January 10, 2014 - The U.S. Mint overproduced its 2013 American Eagle gold bullion coins and will deal with the abundant supply of 2013-dated pieces by shipping them at a 1:1 ratio with their 2014 counterpart, according to the U.S. Mint’s web site. After selling 856,500 ounces of gold Eagle bullion coins in 2013 the Mint has some left over, thanks in part to a 63% increase in gold coin demand in 2013 as well as a 14% increase from 2012 to 2013 in sales of gold Eagle coins.

“It’s very difficult to predict how many coins need to be minted, especially at the end of the year when demand can fall far below the yearly average,” said Mike Chow, analyst for Gold-Bullion.org. “Gold was more volatile than expected in 2013 and this played a part in the excess coinage, too.”

The U.S. Mint says it will honor requests for 2014 coins from its authorized distributors through January 20, at which point it will start shipping 2013 and 2014-dated coins in equal amounts. Chow believes that the supply of 2013 gold bullion coins could sell out before the beginning of February as most dealers will probably offer extra discounts to individuals who are willing to take delivery of last year’s coins.

“Collectors might be picky about the date because they want first strikes and other high-premium rarities, but gold bullion investing is about getting the most bang for your buck and right now the biggest deal in the gold bullion market is the 2013 American Eagle gold bullion coin.”

]]>January 10, 2014 - The U.S. Mint overproduced its 2013 American Eagle gold bullion coins and will deal with the abundant supply of 2013-dated pieces by shipping them at a 1:1 ratio with their 2014 counterpart, according to the U.S. Mint’s web site. After selling 856,500 ounces of gold Eagle bullion coins in 2013 the Mint has some left over, thanks in part to a 63% increase in gold coin demand in 2013 as well as a 14% increase from 2012 to 2013 in sales of gold Eagle coins.

“It’s very difficult to predict how many coins need to be minted, especially at the end of the year when demand can fall far below the yearly average,” said Mike Chow, analyst for Gold-Bullion.org. “Gold was more volatile than expected in 2013 and this played a part in the excess coinage, too.”

The U.S. Mint says it will honor requests for 2014 coins from its authorized distributors through January 20, at which point it will start shipping 2013 and 2014-dated coins in equal amounts. Chow believes that the supply of 2013 gold bullion coins could sell out before the beginning of February as most dealers will probably offer extra discounts to individuals who are willing to take delivery of last year’s coins.

“Collectors might be picky about the date because they want first strikes and other high-premium rarities, but gold bullion investing is about getting the most bang for your buck and right now the biggest deal in the gold bullion market is the 2013 American Eagle gold bullion coin.”

December 20, 2013 - Scientists in Australia have discovered that eucalyptus trees growing above gold deposits in that country have been drawing particles of gold up from the ground, through the trees and into the leaves. Forbes is reporting that veins of gold are known to exist some 30-40 meters below the spot where the eucalyptus trees break ground, and it is believed that the particles of gold traveled through the roots, up the trunk, through the branches and into the individual leaves.

Analysts discovered that branches and twigs of the affected trees had a gold concentration of about 40 parts per billion, while the leaves had a ratio that was twice as high at 80 parts per billion. While speculators are already starting to formulate plans for harvesting the golden trees, scientists warn that a forest of 500 fully-grown trees would only contain enough gold to make a 1-ounce gold bar, coin or ring.

The real benefit of the discovery is that gold exploration companies may now be able to devise less intrusive ways of finding potential mining sites. Instead of digging up tons of earth with diesel-powered machines experts can use eucalyptus leaves to determine the quality of underground gold. Australia and its companies could also make money on novelties like branches or dried, framed leaves from gold-tinged eucalyptus trees.

With many government struggling to pay the bills physical gold is more important than ever. Governments need it to inspire trust and to pay the bills, while individuals need it to gain financial independence from the world’s broken financial system. Gold bullion mining stands to become more affordable and efficient with this discovery, meaning those who recognize the value of gold bullion could soon be able to purchase it at a competitive price due to decreased gold bullion exploration costs.

]]>December 20, 2013 - Scientists in Australia have discovered that eucalyptus trees growing above gold deposits in that country have been drawing particles of gold up from the ground, through the trees and into the leaves. Forbes is reporting that veins of gold are known to exist some 30-40 meters below the spot where the eucalyptus trees break ground, and it is believed that the particles of gold traveled through the roots, up the trunk, through the branches and into the individual leaves.

Analysts discovered that branches and twigs of the affected trees had a gold concentration of about 40 parts per billion, while the leaves had a ratio that was twice as high at 80 parts per billion. While speculators are already starting to formulate plans for harvesting the golden trees, scientists warn that a forest of 500 fully-grown trees would only contain enough gold to make a 1-ounce gold bar, coin or ring.

The real benefit of the discovery is that gold exploration companies may now be able to devise less intrusive ways of finding potential mining sites. Instead of digging up tons of earth with diesel-powered machines experts can use eucalyptus leaves to determine the quality of underground gold. Australia and its companies could also make money on novelties like branches or dried, framed leaves from gold-tinged eucalyptus trees.

With many government struggling to pay the bills physical gold is more important than ever. Governments need it to inspire trust and to pay the bills, while individuals need it to gain financial independence from the world’s broken financial system. Gold bullion mining stands to become more affordable and efficient with this discovery, meaning those who recognize the value of gold bullion could soon be able to purchase it at a competitive price due to decreased gold bullion exploration costs.

December 2, 2013 - Gold bullion values crashed during the mid-morning trading session Monday as investors returned from the extended holiday weekend to discover that the dollar index has jumped significantly. The dollar’s renewed strength was enough to push gold down $3.80, and selling lopped off another $20 from gold’s spot price.

There was worry last week that gold bullion prices could suffer if holiday shopping numbers weren’t as explosive as previously hoped, and many retailers have publicly stated that their sales for the Black Friday weekend were far below expectations. The rough economy and Internet-based retailers have sapped business from companies that have traditionally been post-Thanksgiving powerhouses, and while some consumers may be interested in gold jewelry the demand for gold bullion bars and coins has been relatively low for the last few weeks.

“We expected gold bullion demand to drop off somewhat as the holiday season approached but the drops gold has taken recently are unprecedented,” said Gold-Bullion.org analyst Conrad Brennan. “The long-term dynamics still support gold but low interest rates and a stronger dollar are boosting stock markets and making it hard for some investors to justify a gold bullion purchase in the short-term,” he added.

Historically, gold sees an uptick in interest starting in September through November, at which point consumers begin to focus on holiday shopping and vacations. January is usually a busy month for gold bullion dealers due to the influx of investors opening Gold Bullion IRA plans, and many dealers say that the gold bullion market remains active through June, when summer vacations take precedent and household investors’ interest in investment tapers off. For a month-by-month breakdown of average U.S. gold bullion demand select the free gold guide below or call us directly for expedited shipping of your complimentary starter kit.

]]>December 2, 2013 - Gold bullion values crashed during the mid-morning trading session Monday as investors returned from the extended holiday weekend to discover that the dollar index has jumped significantly. The dollar’s renewed strength was enough to push gold down $3.80, and selling lopped off another $20 from gold’s spot price.

There was worry last week that gold bullion prices could suffer if holiday shopping numbers weren’t as explosive as previously hoped, and many retailers have publicly stated that their sales for the Black Friday weekend were far below expectations. The rough economy and Internet-based retailers have sapped business from companies that have traditionally been post-Thanksgiving powerhouses, and while some consumers may be interested in gold jewelry the demand for gold bullion bars and coins has been relatively low for the last few weeks.

“We expected gold bullion demand to drop off somewhat as the holiday season approached but the drops gold has taken recently are unprecedented,” said Gold-Bullion.org analyst Conrad Brennan. “The long-term dynamics still support gold but low interest rates and a stronger dollar are boosting stock markets and making it hard for some investors to justify a gold bullion purchase in the short-term,” he added.

Historically, gold sees an uptick in interest starting in September through November, at which point consumers begin to focus on holiday shopping and vacations. January is usually a busy month for gold bullion dealers due to the influx of investors opening Gold Bullion IRA plans, and many dealers say that the gold bullion market remains active through June, when summer vacations take precedent and household investors’ interest in investment tapers off. For a month-by-month breakdown of average U.S. gold bullion demand select the free gold guide below or call us directly for expedited shipping of your complimentary starter kit.

November 20, 2013 - The Federal Open Market Committee’s October meeting supposedly covered a lot of ground in terms of the progress (or lack thereof) being made by the United States in terms of an economic recovery. The minutes from that meeting are set to be released to the public tomorrow, and hopeful optimism on the part of investors has translated into slightly lower gold bullion prices for the trading session. As of 4pm EST the gold bullion spot price had fallen $2.80 to $1272.60 per ounce.

Notes from October’s FOMC meeting, due to be released Wednesday afternoon, are typically more superficial than substance. For instance, recent FOMC meetings have done little to quell investors’ fears that the U.S. economy is on the verge of collapsing. Fed chair Ben Bernanke and his likely successor, Janet Yellen, seem convinced that the strategy of heavy printing of currency, quantitative easing and low interest rates is promising, despite the fact that our economy is obviously still stagnant years after these measures were first deployed.

While some Fed governors have countered Bernanke’s claims of recovery with facts and data, the Fed chairman has been adamant that 0% interest rates have spurred job growth through increased corporate borrowing for expansion. Inflation has been a key driver for gold over the last 12 years, but media outlets have consistently quoted the inflation rate as less than 2%. This figure doesn’t account for food and energy cost increases, which are in the double digits.

Regardless of what comes out with the FOMC minutes tomorrow, the numbers don’t lie. As long as interest rates are below 1% and inflation is only obvious to the most savvy of investors, gold bullion values will likely stay flat or go down. History has proven, however, that raising the interest rate could push gold to never-before-seen heights, as was the case during the rising interest rate cycle of 1960-1980. If something similar happens in this cycle, predictions of sky-high gold bullion prices from economists like Peter Schiff that seem ludicrous now may seem reasonable over the next few years.

]]>November 20, 2013 - The Federal Open Market Committee’s October meeting supposedly covered a lot of ground in terms of the progress (or lack thereof) being made by the United States in terms of an economic recovery. The minutes from that meeting are set to be released to the public tomorrow, and hopeful optimism on the part of investors has translated into slightly lower gold bullion prices for the trading session. As of 4pm EST the gold bullion spot price had fallen $2.80 to $1272.60 per ounce.

Notes from October’s FOMC meeting, due to be released Wednesday afternoon, are typically more superficial than substance. For instance, recent FOMC meetings have done little to quell investors’ fears that the U.S. economy is on the verge of collapsing. Fed chair Ben Bernanke and his likely successor, Janet Yellen, seem convinced that the strategy of heavy printing of currency, quantitative easing and low interest rates is promising, despite the fact that our economy is obviously still stagnant years after these measures were first deployed.

While some Fed governors have countered Bernanke’s claims of recovery with facts and data, the Fed chairman has been adamant that 0% interest rates have spurred job growth through increased corporate borrowing for expansion. Inflation has been a key driver for gold over the last 12 years, but media outlets have consistently quoted the inflation rate as less than 2%. This figure doesn’t account for food and energy cost increases, which are in the double digits.

Regardless of what comes out with the FOMC minutes tomorrow, the numbers don’t lie. As long as interest rates are below 1% and inflation is only obvious to the most savvy of investors, gold bullion values will likely stay flat or go down. History has proven, however, that raising the interest rate could push gold to never-before-seen heights, as was the case during the rising interest rate cycle of 1960-1980. If something similar happens in this cycle, predictions of sky-high gold bullion prices from economists like Peter Schiff that seem ludicrous now may seem reasonable over the next few years.

October 21, 2013 - A pair of independent factors have parlayed gold’s gains last week into a promising start for the week of October 21. It appears, according to many gold bullion market analysts, that investors have less than full confidence in Washington’s ability to maintain the long-term solvency of the dollar, after weeks of arguing and finger-pointing culminated in a budget/debt deal that will only keep the government in business for a few more weeks.

Not only is the deal that ended the shutdown temporary but newly released data shows that government stimulus plans may not be doing as much to boost the economy as previously thought. Home sales fell 1.9% in September as potential buyers were scared off by the uncertainty surrounding the fiscal crisis.

The combination of disappointing economic data and a shutdown deal that will have to be revisited soon allowed gold to surge to over $1300 per ounce last week, reaching as high as $1328 on Friday. There was vast speculation as to what would become of gold bullion values this week, but so far it appears that profit-taking has been minimal and the bulls have retained control of the market, at least for now with strong support keeping gold above the psychologically-important $1300 mark.

Non-investment gold demand has been steady, with jewelers buying heavily to prepare for the holiday season and industrial-use gold being scooped up in large quantities due to what buyers view as a relatively low spot price. For this reason, some analysts are predicting that gold bullion prices could rise another 4-6% before the end of 2013.

]]>October 21, 2013 - A pair of independent factors have parlayed gold’s gains last week into a promising start for the week of October 21. It appears, according to many gold bullion market analysts, that investors have less than full confidence in Washington’s ability to maintain the long-term solvency of the dollar, after weeks of arguing and finger-pointing culminated in a budget/debt deal that will only keep the government in business for a few more weeks.

Not only is the deal that ended the shutdown temporary but newly released data shows that government stimulus plans may not be doing as much to boost the economy as previously thought. Home sales fell 1.9% in September as potential buyers were scared off by the uncertainty surrounding the fiscal crisis.

The combination of disappointing economic data and a shutdown deal that will have to be revisited soon allowed gold to surge to over $1300 per ounce last week, reaching as high as $1328 on Friday. There was vast speculation as to what would become of gold bullion values this week, but so far it appears that profit-taking has been minimal and the bulls have retained control of the market, at least for now with strong support keeping gold above the psychologically-important $1300 mark.

Non-investment gold demand has been steady, with jewelers buying heavily to prepare for the holiday season and industrial-use gold being scooped up in large quantities due to what buyers view as a relatively low spot price. For this reason, some analysts are predicting that gold bullion prices could rise another 4-6% before the end of 2013.

September 30, 2013 - Gold bullion investing took somewhat of a hit Monday morning as news emerged that U.S. lawmakers were unable to resolve their budget differences over the weekend, meaning that when the clock strikes midnight the federal government will be partially shuttered until an agreement can be reached. The news shocked most markets in the United States, including the gold bullion market, as investors unsure over President Obama’s next step waited cautiously for updates on the impending government shutdown. As of noon CST the gold bullion spot price was down $7.80 to $1328.90, a 1% loss for the trading session.

The government’s financial shortfalls over the last few years have scared many investors away from bullion, which was once confiscated by the U.S. government to strengthen the dollar and pay down U.S. debt. The U.S. debt limit will be reached in just a couple of weeks, adding to some investors’ worries that their bullion could be vulnerable to confiscation or a bullion “prohibition”, in which no forcible seizure takes place but the bullion’s value goes to zero unless it is sold directly to the U.S. Treasury.

Many gold bullion investors have converted from bullion to certified gold in an effort to protect themselves from any future bullion confiscation, and some investors have sold their gold altogether, opting to remain in cash until our lawmakers sort out the mess that is the U.S. economy. For regular updates on the gold bullion market and special gold bullion discounts subscribe to our RSS feed. Also, investors who are new to gold or want to improve their knowledge about gold bullion can request a free copy of The Insider’s Guide to Gold Bullion Investing in the box below or by calling Gold-Bullion.org directly at 800-300-0715 for a complimentary mail-out kit.

]]>September 30, 2013 - Gold bullion investing took somewhat of a hit Monday morning as news emerged that U.S. lawmakers were unable to resolve their budget differences over the weekend, meaning that when the clock strikes midnight the federal government will be partially shuttered until an agreement can be reached. The news shocked most markets in the United States, including the gold bullion market, as investors unsure over President Obama’s next step waited cautiously for updates on the impending government shutdown. As of noon CST the gold bullion spot price was down $7.80 to $1328.90, a 1% loss for the trading session.

The government’s financial shortfalls over the last few years have scared many investors away from bullion, which was once confiscated by the U.S. government to strengthen the dollar and pay down U.S. debt. The U.S. debt limit will be reached in just a couple of weeks, adding to some investors’ worries that their bullion could be vulnerable to confiscation or a bullion “prohibition”, in which no forcible seizure takes place but the bullion’s value goes to zero unless it is sold directly to the U.S. Treasury.

Many gold bullion investors have converted from bullion to certified gold in an effort to protect themselves from any future bullion confiscation, and some investors have sold their gold altogether, opting to remain in cash until our lawmakers sort out the mess that is the U.S. economy. For regular updates on the gold bullion market and special gold bullion discounts subscribe to our RSS feed. Also, investors who are new to gold or want to improve their knowledge about gold bullion can request a free copy of The Insider’s Guide to Gold Bullion Investing in the box below or by calling Gold-Bullion.org directly at 800-300-0715 for a complimentary mail-out kit.

September 18, 2013 - Gold bullion prices have fallen steadily in recent weeks as factors such as profit-taking and a seemingly stronger U.S. dollar have taken their toll on the yellow metal that was once valued at more than $1900 per ounce, but one particular sector of investors have kept gold bullion prices afloat. Gold bullion bargain-hunters often dismiss lower gold prices as ploys by governments, central banks and firms with other motives to influence investors to place funds in mainstream investments instead of precious metals, and lately these bargain-hunters have “put their money where their mouth is” by scooping up much of the bullion that recently hit the market when gold fell from above $1400 per ounce to today’s comparatively low $1312 per ounce.

The gold bullion spot price remained steady in the $1310-$1315 range throughout most of the trading day Tuesday, with gold bullion bars and American gold Eagles the leading sellers for most U.S. gold bullion dealers. Bullion has taken some heat recently because of its apparent vulnerability to government confiscation (gold bullion was deemed illegal by the U.S. federal government in 1933 and retained that status until the United States left the Gold Standard in the 1970s) but some gold buyers have chosen to ignore the eerily similar circumstances between the Great Depression and the U.S. economy of today.

Instead, these investors use mattresses, coffee cans and gun safes to protect their gold bullion. If the United States imposed a ban on gold bullion hoarding then it is unlikely that forced confiscation would be a reality, but since no one could legally use the gold these investors could end up sitting on worthless gold, a unfortunate fate experienced by many in the 1930s. In the meantime, however, gold bullion buyers are keeping the gold spot price afloat and showing the world that something’s worth in U.S. dollars is not always the end-all, beat-all decision-maker.

]]>September 18, 2013 - Gold bullion prices have fallen steadily in recent weeks as factors such as profit-taking and a seemingly stronger U.S. dollar have taken their toll on the yellow metal that was once valued at more than $1900 per ounce, but one particular sector of investors have kept gold bullion prices afloat. Gold bullion bargain-hunters often dismiss lower gold prices as ploys by governments, central banks and firms with other motives to influence investors to place funds in mainstream investments instead of precious metals, and lately these bargain-hunters have “put their money where their mouth is” by scooping up much of the bullion that recently hit the market when gold fell from above $1400 per ounce to today’s comparatively low $1312 per ounce.

The gold bullion spot price remained steady in the $1310-$1315 range throughout most of the trading day Tuesday, with gold bullion bars and American gold Eagles the leading sellers for most U.S. gold bullion dealers. Bullion has taken some heat recently because of its apparent vulnerability to government confiscation (gold bullion was deemed illegal by the U.S. federal government in 1933 and retained that status until the United States left the Gold Standard in the 1970s) but some gold buyers have chosen to ignore the eerily similar circumstances between the Great Depression and the U.S. economy of today.

Instead, these investors use mattresses, coffee cans and gun safes to protect their gold bullion. If the United States imposed a ban on gold bullion hoarding then it is unlikely that forced confiscation would be a reality, but since no one could legally use the gold these investors could end up sitting on worthless gold, a unfortunate fate experienced by many in the 1930s. In the meantime, however, gold bullion buyers are keeping the gold spot price afloat and showing the world that something’s worth in U.S. dollars is not always the end-all, beat-all decision-maker.

June 12, 2013 - Gold bullion sales are two high-volume mints were down substantially last month, according to published reports from the U.S. Mint and the Perth Mint.

The total number of ounces of gold sold by the Perth Mint in May was 86,983.54 and that includes bullion coins as well as bars. There were 111,505.06 ounces of gold sold in April, setting a Perth Mint all-time record for sales in one month.

The amount of gold bullion sold by the Perth Mint last month was still much higher than the amount of gold sold in May of last year. May 2012’s sales 30,387.88 ounces, barely one-third the total from May 2013.

The U.S. Mint, too, reported lower sales figures in May than in April, and the U.S. Mint’s weekly report shows that sales for June are happening at an even slower pace. The U.S. Mint sold just 70,000 ounces in gold coins in May, including the 5 Star General coins, First Spouse coins, Buffalo coins and American Eagle gold coins. The U.S. Mint sold 209,500 ounces of gold in April. So far in June the U.S. Mint has moved 22,000 ounces, the majority of which are one-ounce coins and the newly-available one-tenth(1/10) ounce coins.

Despite the slowdown, sales from January through April are helping keep the U.S. Mint’s hopes of beating last year’s sales record alive. A total of 753,000 ounces of gold bullion coins and numismatic coins were sold in 2012, and so far this year 594,000 ounces of gold coins have been sold as of last week.

Analysts have attributed heightened demand for gold bullion to the recent pullback in gold prices and investors’ newfound uneasiness about placing money into pool accounts, ETFs and other non-physical gold investments.

]]>June 12, 2013 - Gold bullion sales are two high-volume mints were down substantially last month, according to published reports from the U.S. Mint and the Perth Mint.

The total number of ounces of gold sold by the Perth Mint in May was 86,983.54 and that includes bullion coins as well as bars. There were 111,505.06 ounces of gold sold in April, setting a Perth Mint all-time record for sales in one month.

The amount of gold bullion sold by the Perth Mint last month was still much higher than the amount of gold sold in May of last year. May 2012’s sales 30,387.88 ounces, barely one-third the total from May 2013.

The U.S. Mint, too, reported lower sales figures in May than in April, and the U.S. Mint’s weekly report shows that sales for June are happening at an even slower pace. The U.S. Mint sold just 70,000 ounces in gold coins in May, including the 5 Star General coins, First Spouse coins, Buffalo coins and American Eagle gold coins. The U.S. Mint sold 209,500 ounces of gold in April. So far in June the U.S. Mint has moved 22,000 ounces, the majority of which are one-ounce coins and the newly-available one-tenth(1/10) ounce coins.

Despite the slowdown, sales from January through April are helping keep the U.S. Mint’s hopes of beating last year’s sales record alive. A total of 753,000 ounces of gold bullion coins and numismatic coins were sold in 2012, and so far this year 594,000 ounces of gold coins have been sold as of last week.

Analysts have attributed heightened demand for gold bullion to the recent pullback in gold prices and investors’ newfound uneasiness about placing money into pool accounts, ETFs and other non-physical gold investments.

May 22, 2013 - Exchange-traded funds holding gold bullion, such as SPDR Gold Trust (NYSE: GLD), have shed over 300 tons of gold so far this year, according to ETF analyst Tom Lydon. “Central banks maybe aren’t as concerned,” Lydon said when asked why gold is down. “I think the average investor, with stocks and bonds doing so well, I think they say, ‘hey, I don’t need to hedge, so that gold position I had, I’m going to put that into stocks for now.’” Lydon said that the disposal of about 600,000 pounds of gold bullion by ETFs this year was “amazing” and “incredible." Other analysts have given explanations that are similar yet not exactly the same, and definitely not as enthusiastic.

“I think the average investor is still worried about inflation and the dollar’s purchasing power," said Gold Coin analyst Robert May. “Central banks might have fooled the institutions, or maybe the central banks are fooling themselves, but household investors are still safety-oriented and that’s why they are shifting away from ETFs, not back into traditional investment vehicles, but into physical gold."

If the trend of dumping ETFs stays intact, the gold spot price could fall as low as $1300 an ounce, according to May. “It’s highly unlikely, but given the fact that the volume of ETF markets is so much larger than that of the physical gold market leads me to believe that despite heavy physical buying, the gold spot price could fall before the market finds a balance and is readjusted. At that point, there is no telling how high gold could go,” May added.

]]>May 22, 2013 - Exchange-traded funds holding gold bullion, such as SPDR Gold Trust (NYSE: GLD), have shed over 300 tons of gold so far this year, according to ETF analyst Tom Lydon. “Central banks maybe aren’t as concerned,” Lydon said when asked why gold is down. “I think the average investor, with stocks and bonds doing so well, I think they say, ‘hey, I don’t need to hedge, so that gold position I had, I’m going to put that into stocks for now.’” Lydon said that the disposal of about 600,000 pounds of gold bullion by ETFs this year was “amazing” and “incredible." Other analysts have given explanations that are similar yet not exactly the same, and definitely not as enthusiastic.

“I think the average investor is still worried about inflation and the dollar’s purchasing power," said Gold Coin analyst Robert May. “Central banks might have fooled the institutions, or maybe the central banks are fooling themselves, but household investors are still safety-oriented and that’s why they are shifting away from ETFs, not back into traditional investment vehicles, but into physical gold."

If the trend of dumping ETFs stays intact, the gold spot price could fall as low as $1300 an ounce, according to May. “It’s highly unlikely, but given the fact that the volume of ETF markets is so much larger than that of the physical gold market leads me to believe that despite heavy physical buying, the gold spot price could fall before the market finds a balance and is readjusted. At that point, there is no telling how high gold could go,” May added.

May 9, 2013 - The U.S. Mint announced recently that it would no longer offer one-tenth (1/10) of an ounce gold bullion coins after lower prices and surging demand depleted its inventory. Gold dropped dramatically in mid-April and the spot price decrease of about $200 sparked a buying frenzy in the physical gold market, especially in the United States.

The Mint’s official statement to authorized purchasers said the following:

“While the one ounce gold bullion coins remain the most popular, demand for the one-tenth ounce coins has remained strong too, with year-to-date demand for these coins up over 118% compared to the same period last year. Accordingly, the United States Mint has temporarily suspended sales of its one-tenth ounce gold bullion coins while inventories can be replenished. Once the United States Mint can strike enough one-tenth ounce gold bullion coins to satisfy anticipated marketplace demand, the coins will be put back on sale.”

American Eagle gold bullion coins will still be available in three sizes: one ounce, one-half (1/2) ounce and one-quarter (1/4) ounce. The sum of all gold bullion coins sold by the U.S. Mint this year is more than double the total from the same date in 2012. The one ounce version of the Eagles is by far the most popular, both by weight and by total sales volume. The U.S. Mint has also suspended sales of the silver Eagle Proof coin, and U.S. Mint directors have not yet released an expected timeline for the return of either coin.

]]>May 9, 2013 - The U.S. Mint announced recently that it would no longer offer one-tenth (1/10) of an ounce gold bullion coins after lower prices and surging demand depleted its inventory. Gold dropped dramatically in mid-April and the spot price decrease of about $200 sparked a buying frenzy in the physical gold market, especially in the United States.

The Mint’s official statement to authorized purchasers said the following:

“While the one ounce gold bullion coins remain the most popular, demand for the one-tenth ounce coins has remained strong too, with year-to-date demand for these coins up over 118% compared to the same period last year. Accordingly, the United States Mint has temporarily suspended sales of its one-tenth ounce gold bullion coins while inventories can be replenished. Once the United States Mint can strike enough one-tenth ounce gold bullion coins to satisfy anticipated marketplace demand, the coins will be put back on sale.”

American Eagle gold bullion coins will still be available in three sizes: one ounce, one-half (1/2) ounce and one-quarter (1/4) ounce. The sum of all gold bullion coins sold by the U.S. Mint this year is more than double the total from the same date in 2012. The one ounce version of the Eagles is by far the most popular, both by weight and by total sales volume. The U.S. Mint has also suspended sales of the silver Eagle Proof coin, and U.S. Mint directors have not yet released an expected timeline for the return of either coin.

May 6, 2013 - Sprott Asset Management’s John Embry said in a recent interview that printing money does not lead to a lot of growth. He added he thinks it’s going to lead to a lot of inflation. He said the liquidity created by printing money does little to nothing to increase growth.

Embry also said it is currently a very problematic time for the U.S. dollar, voicing fears the U.S. dollar will at some point in the relatively near future shed its role as the world’s reserve currency. Embry said the United States has not lived up to its responsibilities as the provider of the world’s reserve currency, given lax U.S. fiscal policy, which has led the Chinese to cut deals with countries around the world in which the dollar is being knocked out of the transaction. Sprott believes that as such transactions become more common the U.S. dollar will decline and with that demand for dollar will drop.

A precious metals bullion specialist with CMT group, Karl Schott, said buyers came out of the woodwork for gold and silver bullion products in what he called the best buying opportunity since the collapse in 2008. Schott said it was a surprise to everybody, but especially the gold cartel, as evidenced by the price action.

Following the biggest one day drop in gold since the 1980s on April 15, which saw prices drop over 9 percent, buyers began rushing the physical bullion market in a buying frenzy not witness in recent memory or by veterans of the market.

John Embry, further analyzing the market said things are far, far worse and it should be closer to 20 percent or 25 percent as its insurance if your worst fears are realized. Embry said gold will preserve its purchasing power.

Embry believes now is the time to buy gold. He said he thinks in the fullness of time this will be seen to be the greatest buying opportunity in the entire bull market that started more than 12 years ago. He said prices have been pounded down to levels where the mining companies can’t make any money and anyone who says that gold is in a bubble is making a ridiculous assertion.

]]>May 6, 2013 - Sprott Asset Management’s John Embry said in a recent interview that printing money does not lead to a lot of growth. He added he thinks it’s going to lead to a lot of inflation. He said the liquidity created by printing money does little to nothing to increase growth.

Embry also said it is currently a very problematic time for the U.S. dollar, voicing fears the U.S. dollar will at some point in the relatively near future shed its role as the world’s reserve currency. Embry said the United States has not lived up to its responsibilities as the provider of the world’s reserve currency, given lax U.S. fiscal policy, which has led the Chinese to cut deals with countries around the world in which the dollar is being knocked out of the transaction. Sprott believes that as such transactions become more common the U.S. dollar will decline and with that demand for dollar will drop.

A precious metals bullion specialist with CMT group, Karl Schott, said buyers came out of the woodwork for gold and silver bullion products in what he called the best buying opportunity since the collapse in 2008. Schott said it was a surprise to everybody, but especially the gold cartel, as evidenced by the price action.

Following the biggest one day drop in gold since the 1980s on April 15, which saw prices drop over 9 percent, buyers began rushing the physical bullion market in a buying frenzy not witness in recent memory or by veterans of the market.

John Embry, further analyzing the market said things are far, far worse and it should be closer to 20 percent or 25 percent as its insurance if your worst fears are realized. Embry said gold will preserve its purchasing power.

Embry believes now is the time to buy gold. He said he thinks in the fullness of time this will be seen to be the greatest buying opportunity in the entire bull market that started more than 12 years ago. He said prices have been pounded down to levels where the mining companies can’t make any money and anyone who says that gold is in a bubble is making a ridiculous assertion.

May 1, 2013 - U.S. gold futures registered modest drops in price on Wednesday following a second session of gains on Tuesday as precious metals continue to recover from the 14 percent losses incurred in the market in April.

The price of gold gained 4.2 percent last week, the first weekly gain in five weeks following a surging demand for gold bars and gold coins.

Jim Wyckoff, a senior analyst at Kitco, said bargain hunters continued to step up as they see the near-term technical posture of the gold market continuing to improve, which suggests a market bottom is in place. Wyckoff added that some short covering, technical buying and chart consolidation were also seen Tuesday.

Now, Wyckoff concluded, focus is on the conclusion of the latest meeting of the U.S. Federal Reserve’s Open Market Committee on Wednesday afternoon.

Amid the price drop, sales levels at the U.S. Mint are surging, shattering previous records and possibly in line to shatter all-time records. American Eagle Silver Coins achieved sales of 4,087,000, 21.8 percent higher than the totals from the previous month and 168.9 percent higher than the same time period last year. Year to date, the American Eagle Silver Coins have sold 18,310,000 ounces, a level never before achieved so early in a year. Sales levels are currently up 168.9 percent from the same period last year. It took the Mint until July 16 in 2012 to achieve sales topping 18.3 million ounces, indicating this could be an extremely strong sales year for the American Eagle Silver Bullion Coin.

Currently, April sales levels of the American Eagle Gold Coin are at 209,500 ounces, accounting for the highest monthly total since December 2009. This is more than triple the sales levels from the previous month, at 62,000 ounces. Sales of the American Eagle Gold Coin are a full 947.5 percent higher compared with the same sales period last year, when in April 2012 the Mint saw only 20,000 ounces of Gold Eagle Bullion coinage ordered by authorized distributors.

This month, the U.S. Mint has suspended sales of its one-tenth ounce American Eagle Gold Bullion coins, traditionally its most popular size. Other options in the one-quarter ounce, one-half ounce, and one-ounce sizes have remained available without disruption.

]]>May 1, 2013 - U.S. gold futures registered modest drops in price on Wednesday following a second session of gains on Tuesday as precious metals continue to recover from the 14 percent losses incurred in the market in April.

The price of gold gained 4.2 percent last week, the first weekly gain in five weeks following a surging demand for gold bars and gold coins.

Jim Wyckoff, a senior analyst at Kitco, said bargain hunters continued to step up as they see the near-term technical posture of the gold market continuing to improve, which suggests a market bottom is in place. Wyckoff added that some short covering, technical buying and chart consolidation were also seen Tuesday.

Now, Wyckoff concluded, focus is on the conclusion of the latest meeting of the U.S. Federal Reserve’s Open Market Committee on Wednesday afternoon.

Amid the price drop, sales levels at the U.S. Mint are surging, shattering previous records and possibly in line to shatter all-time records. American Eagle Silver Coins achieved sales of 4,087,000, 21.8 percent higher than the totals from the previous month and 168.9 percent higher than the same time period last year. Year to date, the American Eagle Silver Coins have sold 18,310,000 ounces, a level never before achieved so early in a year. Sales levels are currently up 168.9 percent from the same period last year. It took the Mint until July 16 in 2012 to achieve sales topping 18.3 million ounces, indicating this could be an extremely strong sales year for the American Eagle Silver Bullion Coin.

Currently, April sales levels of the American Eagle Gold Coin are at 209,500 ounces, accounting for the highest monthly total since December 2009. This is more than triple the sales levels from the previous month, at 62,000 ounces. Sales of the American Eagle Gold Coin are a full 947.5 percent higher compared with the same sales period last year, when in April 2012 the Mint saw only 20,000 ounces of Gold Eagle Bullion coinage ordered by authorized distributors.

This month, the U.S. Mint has suspended sales of its one-tenth ounce American Eagle Gold Bullion coins, traditionally its most popular size. Other options in the one-quarter ounce, one-half ounce, and one-ounce sizes have remained available without disruption.

April 29, 2013 - A significant determinant in the gold market is foreign demand, stipulated heavily by China and India, the world’s two largest gold markets traditionally. On the recent price drop, Asian markets have been on a gold-buying spree with reports surfacing of seven hour waits at physical gold bullion dealers in Hong Kong, seven week waits for deliveries from the U.S. Mint to Asia, and levels of business not observed by fifty year veterans of the market.

The Chinese mainland has been the most enthusiastic buyer of gold in Asia, with imports from Hong Kong increasing by 1,000 metric tons just two weeks ago. Chinese buying emptied reserves of gold dealers in their own country, with lines of thirty people observed out the door of Beijing’s largest gold merchant, Caibai, on April 19th. Retailers in Guangzhou ran out of stock as the China Gold Association reported retail gold sales tripling across China on the 15th and 16th of April.

Trading volume surged on the Shanghai Gold Exchange, long-considered a proxy for the metal’s demand in China with consecutive records set on the 19th and 22nd of 30.4 metric tons and 43.3 metric tons respectively. These literally shattered the prior record or 22.0 tons, which was set on February 18 of this year.

Following the emptying of store shelves on the mainland, buyers then went south, sometimes in groups, to swarm the shops in Hong Kong. Chow Tai Fook, the world’s largest jeweler by market capitalization, reported stores popular with mainlanders running out of gold bars with demand not seen since the late 1980s.

Behind the recent buying spree, Forbes reports the Chinese are taking advantage of the recent dip in prices, which is the most significant since 1983. However, the Chinese continued buying as the gold market recovered from the losses.

Recent economic weakness in China was interpreted when the Chinese National Bureau of Statistics reported that Q1 GDP growth came in at 7.7 percent, far under the estimates of 8.0 percent, which was partially to account for the drop in gold prices as the report surfaced on the 15th.

Forbes reports that aside from North Korea, China has become the most fragile economy in East Asia at the current time, with economic concerns evident throughout the Chinese society.

The Chinese, considering the fragile status of their economy, are stockpiling gold bullion.

]]>April 29, 2013 - A significant determinant in the gold market is foreign demand, stipulated heavily by China and India, the world’s two largest gold markets traditionally. On the recent price drop, Asian markets have been on a gold-buying spree with reports surfacing of seven hour waits at physical gold bullion dealers in Hong Kong, seven week waits for deliveries from the U.S. Mint to Asia, and levels of business not observed by fifty year veterans of the market.

The Chinese mainland has been the most enthusiastic buyer of gold in Asia, with imports from Hong Kong increasing by 1,000 metric tons just two weeks ago. Chinese buying emptied reserves of gold dealers in their own country, with lines of thirty people observed out the door of Beijing’s largest gold merchant, Caibai, on April 19th. Retailers in Guangzhou ran out of stock as the China Gold Association reported retail gold sales tripling across China on the 15th and 16th of April.

Trading volume surged on the Shanghai Gold Exchange, long-considered a proxy for the metal’s demand in China with consecutive records set on the 19th and 22nd of 30.4 metric tons and 43.3 metric tons respectively. These literally shattered the prior record or 22.0 tons, which was set on February 18 of this year.

Following the emptying of store shelves on the mainland, buyers then went south, sometimes in groups, to swarm the shops in Hong Kong. Chow Tai Fook, the world’s largest jeweler by market capitalization, reported stores popular with mainlanders running out of gold bars with demand not seen since the late 1980s.

Behind the recent buying spree, Forbes reports the Chinese are taking advantage of the recent dip in prices, which is the most significant since 1983. However, the Chinese continued buying as the gold market recovered from the losses.

Recent economic weakness in China was interpreted when the Chinese National Bureau of Statistics reported that Q1 GDP growth came in at 7.7 percent, far under the estimates of 8.0 percent, which was partially to account for the drop in gold prices as the report surfaced on the 15th.

Forbes reports that aside from North Korea, China has become the most fragile economy in East Asia at the current time, with economic concerns evident throughout the Chinese society.

The Chinese, considering the fragile status of their economy, are stockpiling gold bullion.

April 24, 2013 - After the recent price drop in the gold market, many investors took to considering the market from a different perspective. Though price dynamics may indicate a bottom has been established and the price is set to again resume its bull market, a look again at the gold market may be helpful.

According to Forbes, no one knows why the downturn occurred in the gold market, and one can only postulate on whether the price move down was a good thing. It is entirely possible investors with large positions were forced to sell and that, in part, accounted for the initiation of the price slide. When the ball gets rolling, that same scenario engulfs more investors with larger positions.

]]>April 24, 2013 - After the recent price drop in the gold market, many investors took to considering the market from a different perspective. Though price dynamics may indicate a bottom has been established and the price is set to again resume its bull market, a look again at the gold market may be helpful.

According to Forbes, no one knows why the downturn occurred in the gold market, and one can only postulate on whether the price move down was a good thing. It is entirely possible investors with large positions were forced to sell and that, in part, accounted for the initiation of the price slide. When the ball gets rolling, that same scenario engulfs more investors with larger positions.

It is important to remember in this type of market there is a difference between paper gold and physical gold. Paper gold has an effect on the price of physical gold even though the contracts are not actually backed by the physical metal. As the gold price dropped on April 15, about two months of the world’s gold production was dumped on the market. However, this was not possibly real gold but rather the promise to deliver gold or the equivalent in cash.

Many people who invest in gold are concerned about inflation as an effect of the Federal Reserve’s quantitative easing program. Arguments about inflation vary widely, but undeniably we have seen price increases on real goods such as food.Inflationary concerns from quantitative easing are long term, though if investors begin to think that no inflation will occur it could drastically affect the gold market.

Often, gold investors state concerns about the abandoning of the gold standard by the U.S. dollar in 1972 under then-President Richard Nixon. Some believe the U.S. should return to the gold standard in order to bolster the U.S. dollar as a stable currency. Numbers indicate, however, that with the amount of dollars in circulation it would require gold to be priced at a million dollars an ounce or more in order to back the U.S. dollar, which is likely unfeasible.

Gold is a store of value, and the most trusted store of value historically, but it is not stable in paper markets. The U.S. dollar is not backed by gold and thus the price of gold valued in U.S. dollars may vary widely. Gold will always be worth something significant, though the U.S. dollar may not. The goods and services that could be bought by gold does vary over long periods of time in human history and based on the civilization, but it always bought something. In Rome, an ounce of gold was equivalent to the living needs of an individual for one year, including housing, food, and clothing.

Gold has a place both as a commodity and as a prized part of human life. Undoubtedly, gold is more than just another metal extracted from the ground. Gold in the form of jewelry and adornments has always been used as a status symbol for deep cultural reasons. Current markets place gold as an investment also, however, which varies and diversifies the meaning of gold.

Regardless, gold will always have value, intrinsically and by market standards, as a means of trade and living, and both as a monetary and cultural metal.

April 22, 2013 - Sales of gold coins skyrocketed by 46 percent in April as of Tuesday last week, according to the U.S. Mint’s official figures, as investors reentered the market at a lower price point following the recent market dip.

On Tuesday of last week, the U.S. Mint reported sales of 83,500 ounces of gold, by Wednesday that number increased to 122,000 ounces of gold coins, and currently figures stand at 147,000 ounces of gold coins, compared with just 22,000 ounces sold in all of April in 2012. Currently, the totals are six times those from the same month last year and year to date sale show an increase of 79 percent from 2012.

Market action on Monday showed markets and traders getting on the rally bandwagon with U.S. gold futures for June delivery up $28.50, or 2.04 percent, to $1,422.80 per troy ounce. The spot price of gold gained $20.22, or 1.44 percent, to $1,423.66 per troy ounce.

]]>April 22, 2013 - Sales of gold coins skyrocketed by 46 percent in April as of Tuesday last week, according to the U.S. Mint’s official figures, as investors reentered the market at a lower price point following the recent market dip.

On Tuesday of last week, the U.S. Mint reported sales of 83,500 ounces of gold, by Wednesday that number increased to 122,000 ounces of gold coins, and currently figures stand at 147,000 ounces of gold coins, compared with just 22,000 ounces sold in all of April in 2012. Currently, the totals are six times those from the same month last year and year to date sale show an increase of 79 percent from 2012.

Market action on Monday showed markets and traders getting on the rally bandwagon with U.S. gold futures for June delivery up $28.50, or 2.04 percent, to $1,422.80 per troy ounce. The spot price of gold gained $20.22, or 1.44 percent, to $1,423.66 per troy ounce.

Sales at the U.S. Mint, which have skyrocketed since the fourth quarter of 2012, are taken as an indication of investor demand for physical gold bullion by investors and market traders. Authorized distributors orders for gold coinage from the U.S. Mint has become an important technical indicator for the health of the gold market.

Following the most significant two-session selloff on Friday and Monday of gold futures ever recorded, coin dealers from Tokyo to Dubai to Hong Kong have reported a surge in sales of gold coins on the price drop. Traders in Singapore are already reporting a seven-week wait for delivery on orders from the U.S. Mint, according to Bloomberg.

Premiums on both silver and gold coins are showing an increase from the start of the year, with levels up to 5 percent on gold coins, which sold at a 3 percent premium in January, and 18 percent on silver coins, which sold for a 15 percent premium in January.

GregorGregersen, director at Singapore-based Silver Bullion Pte.Ltd, said the premium for coins is getting higher and higher as they’re harder to get hold of and, as people see that, some of them are going into a panic.

Sales of gold coins in January of 2013 reached 150,000 ounces, the highest rate recorded by the U.S. Mint since mid-2010. Current sales totals indicate April will go on record as completing the most significant buying period in the Mint’s bullion coin program since its inception in 1986, twenty-seven years ago.

]]>http://www.gold-bullion.org/bullion/Data-from-U.S.-Mint-Shows-April-Gold-Coins-Sales-Up-46-Percent/#13666685414158http://www.gold-bullion.org/bullion/As-Gold-Rebounds-Sales-Levels-at-U-S-Mint-are-Highest-Since-December-2009/
Fri, 19 Apr 2013 15:22:41 -0700April 19, 2013 - The price of gold bullion gained on Thursday with a 0.7 percent move upward, a trend that continued by midday on Friday as physical demand for precious metals continued to break records.

On the Comex Division of the New York Mercantile Exchange, U.S. gold futures for June delivery gained $4.60 or 0.33 percent per troy ounce to $1,393.50 per troy ounce. The spot price of gold also gained at a rate of $8.56 or 0.60 percent to $1,394.28 per troy ounce.

James West, portfolio adviser to Midas Letter Opportunity Fund told Market Watch the futures-market led attack on the gold price backfired to some extent as the widespread buying of physical gold induced by this price anomaly will now start to drive the price upward.

]]>April 19, 2013 - The price of gold bullion gained on Thursday with a 0.7 percent move upward, a trend that continued by midday on Friday as physical demand for precious metals continued to break records.

On the Comex Division of the New York Mercantile Exchange, U.S. gold futures for June delivery gained $4.60 or 0.33 percent per troy ounce to $1,393.50 per troy ounce. The spot price of gold also gained at a rate of $8.56 or 0.60 percent to $1,394.28 per troy ounce.

James West, portfolio adviser to Midas Letter Opportunity Fund told Market Watch the futures-market led attack on the gold price backfired to some extent as the widespread buying of physical gold induced by this price anomaly will now start to drive the price upward.

Market perception indicates that changes in the futures market, possibly over concerns in the economy, spurred a fear-based selling drive that was divergent from actual demand in the physical market. Though prices reached 11 percent lower as of Friday, buying demand has been at record levels both in the U.S. and abroad. The U.S. Mint shattered its daily sales record for gold bullion in the wake of the price moves with 63,500 ounces of gold moving in one day, far and away above the previous record of 50,000, which was also achieved in 2013.

With nearly half of the month of April remaining, sales stand at 153,000 ounces of gold bullion ordered by authorized distributors of the U.S. Mint, the strongest level for a month since December 2009.

Physical bullion investors appear to be looking beyond the most immediate economic influences to the role of gold on a longer span timeline. Marcus Grubb, managing director of investment at the World Gold Council, said the WGC believes that despite the current turbulence, the long-term fundamentals of the gold market remain intact. He added that physical gold demand in India, China, and Dubai is incredible because of the price fall.

In a survey by Bloomberg which polled 34 gold analysts, 15 said they expected the price of gold to move higher next week and 14 said they see the price moving down with five declaring themselves neutral.

On Wednesday, the bank announced the launch of a limited edition coin in honor of the Irish writer James Joyce, known preeminently for his masterwork Ulysses. The coin features a portrait of James Joyce and a quotation from the famously difficult novel, which features complex grammar and puns in every sentence.

Apparently, Ireland’s Central Bank shared the frustration of many of Joyce’s readers as the Irish writer was misquoted on the coin.

The beginning of the third chapter of Ulysses reads ineluctable modality of the visible: at least that if no more, thought through my eyes. Signatures of all things I am here to read.

However, on the commemorative coin, the second sentence reads signatures of all things that I am here to read.

Joyce, who is revered both in Ireland and abroad as a master wordsmith deliberately used atypical grammar in his works, sparking a backlash against the bank’s supposed mistake.

Ireland’s Central Bank said on Thursday that it was a matter of artistic representation in its acknowledgement that the text on the Joyce coin does not correspond to the precise text as it appears in Ulysses. The Bank continued by calling the addition of the word that in the second line an error.

Though the Bank will inform buyers as to the discrepancies in the text and has offered to purchase back coins from any buyers who were not aware of the error, there is still a great deal of criticism being levied at the Bank, especially from Irish newspapers.

Comments in the Irish Times called the Central Bank Philistines and a continuation of a mindset that has destroyed much of the countries architectural, archaeological, and mythological heritage in the last 50 years. It adds that the hill of Tara, an important Irish archaeological site, is now a quarry for cement roadstone. Finally, the author laments the barbarism in Ireland today.

Still other comments were more humorous, touching on the famously impenetrable text of James Joyce, with one reader asking whether more than one word was misquoted because he doesn’t understand any of it.

Despite the error and the accompanying row, the coin is still quite popular.

]]>April 16, 2013 - Ireland’s Central Bank is currently involved in a row concerning a very popular coin.

On Wednesday, the bank announced the launch of a limited edition coin in honor of the Irish writer James Joyce, known preeminently for his masterwork Ulysses. The coin features a portrait of James Joyce and a quotation from the famously difficult novel, which features complex grammar and puns in every sentence.

Apparently, Ireland’s Central Bank shared the frustration of many of Joyce’s readers as the Irish writer was misquoted on the coin.

The beginning of the third chapter of Ulysses reads ineluctable modality of the visible: at least that if no more, thought through my eyes. Signatures of all things I am here to read.

However, on the commemorative coin, the second sentence reads signatures of all things that I am here to read.

Joyce, who is revered both in Ireland and abroad as a master wordsmith deliberately used atypical grammar in his works, sparking a backlash against the bank’s supposed mistake.

Ireland’s Central Bank said on Thursday that it was a matter of artistic representation in its acknowledgement that the text on the Joyce coin does not correspond to the precise text as it appears in Ulysses. The Bank continued by calling the addition of the word that in the second line an error.

Though the Bank will inform buyers as to the discrepancies in the text and has offered to purchase back coins from any buyers who were not aware of the error, there is still a great deal of criticism being levied at the Bank, especially from Irish newspapers.

Comments in the Irish Times called the Central Bank Philistines and a continuation of a mindset that has destroyed much of the countries architectural, archaeological, and mythological heritage in the last 50 years. It adds that the hill of Tara, an important Irish archaeological site, is now a quarry for cement roadstone. Finally, the author laments the barbarism in Ireland today.

Still other comments were more humorous, touching on the famously impenetrable text of James Joyce, with one reader asking whether more than one word was misquoted because he doesn’t understand any of it.

Despite the error and the accompanying row, the coin is still quite popular.

]]>http://www.gold-bullion.org/bullion/Irish-James-Joyce-Coin-Misquotes-Classic-Work/#13661357664156http://www.gold-bullion.org/bullion/Physical-Gold-Responding-to-Predictions-for-Gold-Investment/
Mon, 08 Apr 2013 11:46:11 -0700April 8, 2013 - The price of gold gained 1.7 percent, $26.45, on Friday in the biggest one day gains in the market since November following the release of a surprisingly lackluster U.S. jobs report that indicated only 88,000 jobs, half the projected number, were added to the U.S. economy in the month of March.

Additionally, investors watching the recovery process in the U.S. and looking to where gold would go next encountered the geopolitical uncertainties currently supporting the gold price.

On Thursday, the Bank of Japan announced plans to pump large amounts of money into the financial system in order to boost lending and kick-start growth. The Bank wants to double the money supply and push inflation over 2 percent over the next two years.

Monetary easing, beginning with the Federal Reserve’s quantitative easing program, has been a main pillar support of the gold market over the past five years. Investment demand combined with fears of inflation inherent in the easing program have contributed to push price of gold from $681 per troy ounce in October of 2008 to $1,921 per troy ounce in September of 2011. That support remains in place and the recent U.S. jobs report has given investors confidence it will be with us for some time.

A spokesperson for Physical Gold Ltd, a leading UK gold dealer, said with the global economy still making attempts to recover and key economies keeping up monetary easing policies, gold should still be supported for the time being. He added gold is expected to reach $1,800 per troy ounce before the end of the year with gold investment remaining a sensible option as a hedge against inflation.

Physical demand for U.S. gold and silver bullion coin has been at record-shattering levels since the start of the year. Currently, the U.S. Mint has reported that it has surpassed the milestone of 15 million ounces of silver ordered by authorized distributors occurring earlier this year than in any year of the coin’s 27-year history.

The record demand for American Silver Eagles, which forced the Mint to temporarily suspend sales in the month of January, followed by the institution of an allocation or rationing program, continues, though it is somewhat abated in the wake of recent financial news that has left the market looking for fundamental influences.

]]>April 8, 2013 - The price of gold gained 1.7 percent, $26.45, on Friday in the biggest one day gains in the market since November following the release of a surprisingly lackluster U.S. jobs report that indicated only 88,000 jobs, half the projected number, were added to the U.S. economy in the month of March.

Additionally, investors watching the recovery process in the U.S. and looking to where gold would go next encountered the geopolitical uncertainties currently supporting the gold price.

On Thursday, the Bank of Japan announced plans to pump large amounts of money into the financial system in order to boost lending and kick-start growth. The Bank wants to double the money supply and push inflation over 2 percent over the next two years.

Monetary easing, beginning with the Federal Reserve’s quantitative easing program, has been a main pillar support of the gold market over the past five years. Investment demand combined with fears of inflation inherent in the easing program have contributed to push price of gold from $681 per troy ounce in October of 2008 to $1,921 per troy ounce in September of 2011. That support remains in place and the recent U.S. jobs report has given investors confidence it will be with us for some time.

A spokesperson for Physical Gold Ltd, a leading UK gold dealer, said with the global economy still making attempts to recover and key economies keeping up monetary easing policies, gold should still be supported for the time being. He added gold is expected to reach $1,800 per troy ounce before the end of the year with gold investment remaining a sensible option as a hedge against inflation.

Physical demand for U.S. gold and silver bullion coin has been at record-shattering levels since the start of the year. Currently, the U.S. Mint has reported that it has surpassed the milestone of 15 million ounces of silver ordered by authorized distributors occurring earlier this year than in any year of the coin’s 27-year history.

The record demand for American Silver Eagles, which forced the Mint to temporarily suspend sales in the month of January, followed by the institution of an allocation or rationing program, continues, though it is somewhat abated in the wake of recent financial news that has left the market looking for fundamental influences.

]]>http://www.gold-bullion.org/bullion/Physical-Gold-Responding-to-Predictions-for-Gold-Investment/#13654467714154http://www.gold-bullion.org/bullion/Bullion-Firm-Reveals-British-Holdings-Increased-Tenfold-in-Five-Years/
Fri, 05 Apr 2013 13:56:15 -0700April 5, 2013 - Since the beginning of the financial crisis, safe-haven investors in Britain have ploughed hundreds of millions of pounds into gold.

Following the nationalization of Northern Rock, the UK was falling into recession as one of Wall Street’s biggest investment banks teetered on the edge of bankruptcy. At the time, one asset was just beginning to soar: gold.

This week marks the five-year anniversary the price of an ounce of gold shot through the $1,000 per troy ounce level and at this time there have never been more private gold traders or individual investors looking to store their value in precious metals.

BullionVault, which operates vaults in London, New York, and Zurich, shows there has been a nine-fold increase in the number of gold bullion traders in the past five years, with Britons being some of the most enthusiastic buyers. Many of them, according to BullionVault, choose to keep their investments in Switzerland.

BullionVault estimates that its customers in Britain now hold 32.9 tonnes of gold bars valued at 1.11 billion GBP, over ten-fold the value of British holdings in their vaults five years ago.

Adrian Ash, BullionVault’s head of research in London said consumers decide to put their hard-earned money into physical gold for many reasons. He said in the main it’s to diversify away from other investment markets, to hedge against inflation or as crisis insurance if they fear global financial instability. Whatever the reason, he added, it’s clear that the last five years has seen unprecedented demand for gold.

Strong demand for physical bullion with limited supply has contributed to pushing prices so high in markets.

Danny Cox of financial advisers Hargreaves Lansdown said over the last five years the financial crisis pushed investors towards gold as a safe haven asset and we have seen central banks such as Russia and China being big buyers of gold. He added that speculative investors have also been attracted and there has also been an increase in demand for gold jewelry, particularly from India and China.

Historically, gold performs well when the stock markets are rallying. The price of gold has fallen back somewhat this year as Wall Street and the FTSE index reached five-year record highs, though the safe haven demand in the precious metal continues to be strong as Mints around the world report record sales demand for physical bullion.

]]>April 5, 2013 - Since the beginning of the financial crisis, safe-haven investors in Britain have ploughed hundreds of millions of pounds into gold.

Following the nationalization of Northern Rock, the UK was falling into recession as one of Wall Street’s biggest investment banks teetered on the edge of bankruptcy. At the time, one asset was just beginning to soar: gold.

This week marks the five-year anniversary the price of an ounce of gold shot through the $1,000 per troy ounce level and at this time there have never been more private gold traders or individual investors looking to store their value in precious metals.

BullionVault, which operates vaults in London, New York, and Zurich, shows there has been a nine-fold increase in the number of gold bullion traders in the past five years, with Britons being some of the most enthusiastic buyers. Many of them, according to BullionVault, choose to keep their investments in Switzerland.

BullionVault estimates that its customers in Britain now hold 32.9 tonnes of gold bars valued at 1.11 billion GBP, over ten-fold the value of British holdings in their vaults five years ago.

Adrian Ash, BullionVault’s head of research in London said consumers decide to put their hard-earned money into physical gold for many reasons. He said in the main it’s to diversify away from other investment markets, to hedge against inflation or as crisis insurance if they fear global financial instability. Whatever the reason, he added, it’s clear that the last five years has seen unprecedented demand for gold.

Strong demand for physical bullion with limited supply has contributed to pushing prices so high in markets.

Danny Cox of financial advisers Hargreaves Lansdown said over the last five years the financial crisis pushed investors towards gold as a safe haven asset and we have seen central banks such as Russia and China being big buyers of gold. He added that speculative investors have also been attracted and there has also been an increase in demand for gold jewelry, particularly from India and China.

Historically, gold performs well when the stock markets are rallying. The price of gold has fallen back somewhat this year as Wall Street and the FTSE index reached five-year record highs, though the safe haven demand in the precious metal continues to be strong as Mints around the world report record sales demand for physical bullion.

In Powell’s view central banks want to support their currencies and control interest rates and government bond prices. To do this, they intervene in the gold market by selling their gold outright, by leasing it into the market through bullion banks, and by swapping it to other central banks. They also sell gold options and futures through the Bank of International Settlements and take many short positions to control price.

All the major Western central banks are participating or at the very least aware of what’s happening. In London, the gold pool in the 1960s brought about an open identification of banks working to suppress or manipulate the gold price. Powell believes the most recent and major banks working to control the price of gold are the U.S., the Bank of England, and the Bundesbank of Germany.

Powell believes the manipulation of the gold market is the destruction of all free markets and the destruction of transparency in government. He added, though, that certainly gold investors and mining companies and developing countries that rely on the production of commodities for their livelihood are terribly harmed.

Powell said when you lose your free markets, you lose your competitive economy as well as your democracy when such major government action is undertaken in secret.

Gold is a very important, if not the most important, determinant of the value of other financial instruments. GATA has collected much State Department memoranda, memos from intelligence agencies, as well as documentation from history about the importance the U.S. government put on controlling the gold price.

As an example, Powell brought up cables leaked through Wikileaks from the U.S. Embassy in Beijing, China to the State Department in Washington. They are translations into English of Chinese government news agencies reports about the Western gold price suppression scheme. Powell states the significance of these cables is that they show the Chinese government has long been aware of the Western gold price suppression scheme and the U.S. government knows the Chinese government knows.

Real values of gold on today’s market may be beyond calculation if GATA’s price suppression accusations turn out to be fact. The U.S. government will use every resource to bolster the U.S. dollar as the reserve currency of the world, but the effect on free market economies and on the gold market is not known.

In Powell’s view central banks want to support their currencies and control interest rates and government bond prices. To do this, they intervene in the gold market by selling their gold outright, by leasing it into the market through bullion banks, and by swapping it to other central banks. They also sell gold options and futures through the Bank of International Settlements and take many short positions to control price.

All the major Western central banks are participating or at the very least aware of what’s happening. In London, the gold pool in the 1960s brought about an open identification of banks working to suppress or manipulate the gold price. Powell believes the most recent and major banks working to control the price of gold are the U.S., the Bank of England, and the Bundesbank of Germany.

Powell believes the manipulation of the gold market is the destruction of all free markets and the destruction of transparency in government. He added, though, that certainly gold investors and mining companies and developing countries that rely on the production of commodities for their livelihood are terribly harmed.

Powell said when you lose your free markets, you lose your competitive economy as well as your democracy when such major government action is undertaken in secret.

Gold is a very important, if not the most important, determinant of the value of other financial instruments. GATA has collected much State Department memoranda, memos from intelligence agencies, as well as documentation from history about the importance the U.S. government put on controlling the gold price.

As an example, Powell brought up cables leaked through Wikileaks from the U.S. Embassy in Beijing, China to the State Department in Washington. They are translations into English of Chinese government news agencies reports about the Western gold price suppression scheme. Powell states the significance of these cables is that they show the Chinese government has long been aware of the Western gold price suppression scheme and the U.S. government knows the Chinese government knows.

Real values of gold on today’s market may be beyond calculation if GATA’s price suppression accusations turn out to be fact. The U.S. government will use every resource to bolster the U.S. dollar as the reserve currency of the world, but the effect on free market economies and on the gold market is not known.

]]>http://www.gold-bullion.org/bullion/Gold-Manipulation-with-GATA/#13650268304151http://www.gold-bullion.org/bullion/Collapse-in-Cyprus-Triggers-Unintended-Consequences/
Mon, 01 Apr 2013 11:22:01 -0700April 1, 2013 - There are traders and investors who believe that by imposing losses on investors and reducing the liabilities in the banking system in Cyprus, the powers in the European Union have successfully addressed the banking crisis. At their most benign, opponents believe the thrust to tax bank deposits in the small Mediterranean country was just unfair.

There is currently still uncertainty about remaining deposits in Cyprus, capital controls, and even the solvency of the Cyprus government itself. Additionally, markets in other troubled European Union economies are very nervous about the possibility the same measures could take place.

For investors in gold, current events in Cyprus are more of an optimistic sign than a headache. Everything over 100,000 euros in a Cyprus bank account, including foreign investment, will be taxed at 40 percent, but owners and holder of physical gold bullion are looking at a very bullish scenario.

Panos Kostopoulos of AMP Gold Bullion Merchants Ltd in Nicosia said immediately after the Cyprus presidential elections on February 24, he strongly recommended Cypriots buy gold in order to protect their hard-earned money in the light of wide-spread rumors of a haircut on deposits that were already making the rounds at the time.

Kostopoulos said no one heeded his warning, but following the official announcement of the government’s decision to tax bank deposits, he received orders for over 15kg of gold within one day.

There is currently a cap on daily withdrawals from Cypriot banks of 300 euros, making the purchase of gold with cash difficult if not impossible in large quantity. Cypriots are then forced to often buy gold that is currently located out of the country, thereby delaying their actual physical possession of their own gold following the imposition of the bank taxes and withdrawal limits. Kostopoulos joins many other Cypriots in not being optimistic the capital controls will be lifted soon.

It is astonishing to think that the people of Cyprus, having witnessed events in nearby Greece and understanding that the country had to reckon with the European Union over its financial system, did not take more proactive measures in purchasing physical gold bullion.

With European Union officials already calling the banking deposit tax in Cyprus a template that could be used in any other European Union sovereign nation, it is even more astonishing to watch European Union member countries shirk recent events and believe that their financial system is any different.

]]>April 1, 2013 - There are traders and investors who believe that by imposing losses on investors and reducing the liabilities in the banking system in Cyprus, the powers in the European Union have successfully addressed the banking crisis. At their most benign, opponents believe the thrust to tax bank deposits in the small Mediterranean country was just unfair.

There is currently still uncertainty about remaining deposits in Cyprus, capital controls, and even the solvency of the Cyprus government itself. Additionally, markets in other troubled European Union economies are very nervous about the possibility the same measures could take place.

For investors in gold, current events in Cyprus are more of an optimistic sign than a headache. Everything over 100,000 euros in a Cyprus bank account, including foreign investment, will be taxed at 40 percent, but owners and holder of physical gold bullion are looking at a very bullish scenario.

Panos Kostopoulos of AMP Gold Bullion Merchants Ltd in Nicosia said immediately after the Cyprus presidential elections on February 24, he strongly recommended Cypriots buy gold in order to protect their hard-earned money in the light of wide-spread rumors of a haircut on deposits that were already making the rounds at the time.

Kostopoulos said no one heeded his warning, but following the official announcement of the government’s decision to tax bank deposits, he received orders for over 15kg of gold within one day.

There is currently a cap on daily withdrawals from Cypriot banks of 300 euros, making the purchase of gold with cash difficult if not impossible in large quantity. Cypriots are then forced to often buy gold that is currently located out of the country, thereby delaying their actual physical possession of their own gold following the imposition of the bank taxes and withdrawal limits. Kostopoulos joins many other Cypriots in not being optimistic the capital controls will be lifted soon.

It is astonishing to think that the people of Cyprus, having witnessed events in nearby Greece and understanding that the country had to reckon with the European Union over its financial system, did not take more proactive measures in purchasing physical gold bullion.

With European Union officials already calling the banking deposit tax in Cyprus a template that could be used in any other European Union sovereign nation, it is even more astonishing to watch European Union member countries shirk recent events and believe that their financial system is any different.

The time to purchase physical gold bullion is certainly before financial problems of a country become so unmanageable they must cede the sanctity of their citizen’s bank accounts.

]]>http://www.gold-bullion.org/bullion/Collapse-in-Cyprus-Triggers-Unintended-Consequences/#13648405214149http://www.gold-bullion.org/bullion/As-the-Price-of-Gold-Gains-US-Gold-Coins-Advance/
Thu, 28 Mar 2013 12:52:06 -0700March 28, 2013 - Before a slight drop on Thursday before the holiday weekend, the price of gold gained on Wednesday following a three-session drop. The price of gold is still in line for a 1.7 percent increase on the month, indicating a strong market, though current market events are swaying the price considerably.

By midday on Thursday, the spot price of gold shed $9.83 or 0.62 percent to $1,595.27 per troy ounce. U.S. gold futures for June delivery fell $12.10 or 0.73 percent to $1,595.90 per troy ounce.

Jim Wyckoff in the PM Kitco Metals Roundup said fresh safe-haven demand was featured in markets as there are still worries about the Cyprus banking crisis causing a run on European Union banks. He added that Cyprus banks are scheduled to reopen on Thursday and television cameras will be on the ATM machines there, watching for big lines. The concern, as Wyckoff points out, is that this could spook other EU bank depositors. He also said gold has benefitted from short covering from weak-handed sellers of the metal just recently.

Additionally, bullion sales advanced at the U.S. Mint as American Gold Eagle Coins gained 6,000 ounces and American Gold Buffalo coins gained 1,000 ounces. Sales of American Eagle Silver Coins, however, were unchanged following the coins’ surge of 918,500 ounces on the previous day to notably top year-to-date sales of 14 million ounces. Until the current month, 12.4 million ounces had been the highest sales total through the first three months of a year.

In Thursday’s trade before the holiday weekend, the spot price of gold dropped $9.83 or 0.66 percent to $1,594.69 per troy ounce. U.S. gold futures for June delivery lost $11.50 or 0.72 percent to $1,595.00 per troy ounce.

The marketplace continues to watch events out of Cyprus, which has reopened its banks with a 300 euro limit on cash withdrawals. Earlier this week, the government of Cyprus imposed a tax of up to 40 percent on accounts containing over 100,000 euros.

While the European sovereign debt crisis has been out of the news for some time, the most recent manifestation is an example of current market concerns that the tax on deposits could be a sign the debt crisis is again moving to the foreground in market affairs.

]]>March 28, 2013 - Before a slight drop on Thursday before the holiday weekend, the price of gold gained on Wednesday following a three-session drop. The price of gold is still in line for a 1.7 percent increase on the month, indicating a strong market, though current market events are swaying the price considerably.

By midday on Thursday, the spot price of gold shed $9.83 or 0.62 percent to $1,595.27 per troy ounce. U.S. gold futures for June delivery fell $12.10 or 0.73 percent to $1,595.90 per troy ounce.

Jim Wyckoff in the PM Kitco Metals Roundup said fresh safe-haven demand was featured in markets as there are still worries about the Cyprus banking crisis causing a run on European Union banks. He added that Cyprus banks are scheduled to reopen on Thursday and television cameras will be on the ATM machines there, watching for big lines. The concern, as Wyckoff points out, is that this could spook other EU bank depositors. He also said gold has benefitted from short covering from weak-handed sellers of the metal just recently.

Additionally, bullion sales advanced at the U.S. Mint as American Gold Eagle Coins gained 6,000 ounces and American Gold Buffalo coins gained 1,000 ounces. Sales of American Eagle Silver Coins, however, were unchanged following the coins’ surge of 918,500 ounces on the previous day to notably top year-to-date sales of 14 million ounces. Until the current month, 12.4 million ounces had been the highest sales total through the first three months of a year.

In Thursday’s trade before the holiday weekend, the spot price of gold dropped $9.83 or 0.66 percent to $1,594.69 per troy ounce. U.S. gold futures for June delivery lost $11.50 or 0.72 percent to $1,595.00 per troy ounce.

The marketplace continues to watch events out of Cyprus, which has reopened its banks with a 300 euro limit on cash withdrawals. Earlier this week, the government of Cyprus imposed a tax of up to 40 percent on accounts containing over 100,000 euros.

While the European sovereign debt crisis has been out of the news for some time, the most recent manifestation is an example of current market concerns that the tax on deposits could be a sign the debt crisis is again moving to the foreground in market affairs.

]]>http://www.gold-bullion.org/bullion/As-the-Price-of-Gold-Gains-US-Gold-Coins-Advance/#13645003264147http://www.gold-bullion.org/bullion/Gold-Slightly-Weaker-on-Mildly-Bearish-FOMC-Statement/
Wed, 20 Mar 2013 15:52:22 -0700March 20, 2013 - The price of gold ended the U.S. day session trading slightly lower with a modest extension of losses following a bearish state from the Federal Reserve following the FOMC meeting that took place over the last two days in Washington.

The spot price of gold drifted $5.22 or 0.40 percent in markets to $1,606.35 per troy ounce. U.S. gold futures for April delivery lost $4.30 or 0.27 percent to $1,607.00 per troy ounce.

On Wednesday afternoon the Federal Open Market Committee, the policy-making committee of the Federal Reserve, announced it would leave monetary policy unchanged. The move was not entirely unexpected though recently upbeat U.S. economic data aroused anticipation the Fed would announce a pullback in quantitative easing. Members of the committee, minutes from prior meetings released in February revealed, leaned toward a pullback in easing. The vote of the current meeting showed and 11 to 1 preference to keep the course of monetary policy steady.

]]>March 20, 2013 - The price of gold ended the U.S. day session trading slightly lower with a modest extension of losses following a bearish state from the Federal Reserve following the FOMC meeting that took place over the last two days in Washington.

The spot price of gold drifted $5.22 or 0.40 percent in markets to $1,606.35 per troy ounce. U.S. gold futures for April delivery lost $4.30 or 0.27 percent to $1,607.00 per troy ounce.

On Wednesday afternoon the Federal Open Market Committee, the policy-making committee of the Federal Reserve, announced it would leave monetary policy unchanged. The move was not entirely unexpected though recently upbeat U.S. economic data aroused anticipation the Fed would announce a pullback in quantitative easing. Members of the committee, minutes from prior meetings released in February revealed, leaned toward a pullback in easing. The vote of the current meeting showed and 11 to 1 preference to keep the course of monetary policy steady.

The Fed has also said it would keep a very close eye on the progress of U.S. economic growth.

Forbes’ analysis details the Fed, while keeping monetary policy very accommodative, is beginning to lay the groundwork for an exit strategy to the extraordinary and controversial quantitative easing program. The Fed had previously tied its bond-buying program to the health of the labor market, though those ties appear to have faded somewhat in market perception.

Fed Chairman Ben Bernanke held a press conference following the conclusion of the FOMC meeting in which the Chairman said nothing market sensitive, according to Forbes.

The controversy over the European Union and International Monetary Fund bailout package for the debt-beleaguered Mediterranean nation of Cyprus is likely to resume an influential aspect in markets following the FOMC press conference.

The Cyprus parliament voted on Tuesday to reject a proposal to tax the bank deposits of citizens in order to secure a bailout package. The market considered the proposal could lead to similar measures being adopted in other troubled European economies. The reemergence of the European debt troubles, though uncertain for the global monetary system, have been supportive of the precious metals markets as investors again sought safe haven in precious metals.

March 18, 2013 - The price of gold is higher by midday trade on Monday, after hitting a fresh three-week high and trading above the key $1,600.00 per troy ounce level. Prices are extending gains from last week’s trade as a flare-up in the European Union debt crisis has propelled traders and investors to again seek safe-haven in the gold market.

U.S. gold futures for April delivery gained $10.20 or 0.71 percent to $1,603.80 per troy ounce. The spot price of gold gained $13.27 or 0.95 percent to $1,607.19 per troy ounce.

Cypriot officials are considering taxing savings accounts in their domestic banks as a part of an overall banking bailout plan with the European Central Bank and the International Monetary Fund. Market participants are considering the possibility that similar proposals could be floated in other financially troubled nations in the European Union.

]]>March 18, 2013 - The price of gold is higher by midday trade on Monday, after hitting a fresh three-week high and trading above the key $1,600.00 per troy ounce level. Prices are extending gains from last week’s trade as a flare-up in the European Union debt crisis has propelled traders and investors to again seek safe-haven in the gold market.

U.S. gold futures for April delivery gained $10.20 or 0.71 percent to $1,603.80 per troy ounce. The spot price of gold gained $13.27 or 0.95 percent to $1,607.19 per troy ounce.

Cypriot officials are considering taxing savings accounts in their domestic banks as a part of an overall banking bailout plan with the European Central Bank and the International Monetary Fund. Market participants are considering the possibility that similar proposals could be floated in other financially troubled nations in the European Union.

The proposal has infuriated Cypriots with savings accounts and fueled fears of runs on banks not only in the Mediterranean nation, but also in other troubled European economies.

Precious metals have been enjoying a renaissance in safe-haven demand since the fourth quarter of 2012 when investors began to take concerns over the U.S. budget crisis more seriously. The debt-troubled European Union was largely on the back burner during that time, though analysts with Forbes and others have previously said markets should watch for an eventual flare-up. Debt problems in Europe have engendered some relative political agreements but little to no real action to conquer the debt levels themselves.

The U.S. dollar index is trading higher on Monday in the perceived safe-haven demand. The price of gold had been benefiting from a lower U.S. dollar index through last week. A weaker U.S. dollar benefits the price of gold as it makes gold more affordable for holders of foreign currency, thereby stoking demand.

Currently, Forbes states the recent April gold futures prices that reached a new three-week high on Monday signal bulls are starting to gain some fresh upside near-term technical momentum, suggesting a near-term market bottom is in place. Bulls’ next price breakout objective is a close above $1,619.70 per troy ounce, a level of strong resistance. The February low at $1,554.30 per troy ounce is a solid support level.

March 7, 2013 - The price of gold futures are trading modestly higher in midmorning trade in the U.S. as a lower U.S. dollar index has prompted both short covering and bargain hunting in the gold and silver markets. Economic reports due for release in the next few days are awaited as traders and investors look for more definitive direction on the markets, particularly as pertaining to the central banks.

U.S. gold futures for April delivery gained $6.00 to $1,580.90 per troy ounce as the spot price of gold quoted down a modest $2.40 to $1,582.50 per troy ounce.

A successful Spanish bond auction boosted the euro currency and European stock markets on Thursday as good investor demand and lower yields brought confidence to markets. The European Central Bank also held its monthly meeting on Thursday and it announced no major changes to its monetary policy, as expected.

]]>March 7, 2013 - The price of gold futures are trading modestly higher in midmorning trade in the U.S. as a lower U.S. dollar index has prompted both short covering and bargain hunting in the gold and silver markets. Economic reports due for release in the next few days are awaited as traders and investors look for more definitive direction on the markets, particularly as pertaining to the central banks.

U.S. gold futures for April delivery gained $6.00 to $1,580.90 per troy ounce as the spot price of gold quoted down a modest $2.40 to $1,582.50 per troy ounce.

A successful Spanish bond auction boosted the euro currency and European stock markets on Thursday as good investor demand and lower yields brought confidence to markets. The European Central Bank also held its monthly meeting on Thursday and it announced no major changes to its monetary policy, as expected.

The employment situation report for February, widely regarded as the most important U.S. economic report of the month, is due out February morning and will be analyzed by investors looking for a stronger indication as to the central bank’s intentions. Typically there is an uptick in active trading immediately following the release of the report.

Trends indicate that investors demand for physical gold and silver has increased recently with the lower price levels being achieved.

The U.S. dollar is trading lower on Thursday morning, due to some profit taking from recent gains that pushed the index to a six-month high this week. A lower U.S. dollar is beneficial to the gold market as it makes the price of gold more affordable for holders of foreign currency, thereby invigorating physical demand for gold and silver bullion.

The next upside price breakout objective is a close above the solid technical resistance at last week’s high of $1,619.70 per troy ounce. There is solid technical support at the February low of $1,554.30 per troy ounce. On the upside, resistance is at this week’s high of $1,585.80 per troy ounce and then at $1,590.00 per troy ounce. There is support at $1,575.00 and last week’s low of $1,564.00 per troy ounce.

March 4, 2013 - The price of gold bullion reached one-week lows below $1,570 per troy ounce on Friday morning, in line for a third straight weekly drop, following a drop of 5.9 percent during the month of February as gold exchange traded funds saw their biggest calendar month outflow on record.

A Commerzbank commodities note states ETFs will probably contribute negatively to investment demand for the first time in eight quarters.

The note continued it is nonetheless to early to proclaim the end of the twelve-year bull market for gold. The ultra-loose monetary policy of major central banks, negative real interest rate and gold purchases by the central banks of emerging economies continue to suggest that gold prices will rise.

Following a boost in the gold market from the testimony of Federal Reserve Chairman Ben Bernanke, the price of gold gained over $20 per troy ounce, but the market was unable to hold onto the momentum for an extended period of time in the current market environment.

In the U.S., markets are currently working out from the shadow of the sequestration budget cuts, though Ed Meir, metals analyst at brokerage INTL FCStone, said he does not think the U.S. sequester will change the gold market sentiment one way or the other. He added that $85 billion in spending cuts is simply too small to make much of a difference to the economy and although it could cause some problems, it will have no bearing on influencing investor allocations among different asset classes.

]]>March 4, 2013 - The price of gold bullion reached one-week lows below $1,570 per troy ounce on Friday morning, in line for a third straight weekly drop, following a drop of 5.9 percent during the month of February as gold exchange traded funds saw their biggest calendar month outflow on record.

A Commerzbank commodities note states ETFs will probably contribute negatively to investment demand for the first time in eight quarters.

The note continued it is nonetheless to early to proclaim the end of the twelve-year bull market for gold. The ultra-loose monetary policy of major central banks, negative real interest rate and gold purchases by the central banks of emerging economies continue to suggest that gold prices will rise.

Following a boost in the gold market from the testimony of Federal Reserve Chairman Ben Bernanke, the price of gold gained over $20 per troy ounce, but the market was unable to hold onto the momentum for an extended period of time in the current market environment.

In the U.S., markets are currently working out from the shadow of the sequestration budget cuts, though Ed Meir, metals analyst at brokerage INTL FCStone, said he does not think the U.S. sequester will change the gold market sentiment one way or the other. He added that $85 billion in spending cuts is simply too small to make much of a difference to the economy and although it could cause some problems, it will have no bearing on influencing investor allocations among different asset classes.

However, Meir did say that INTL FCStone suspects we will see more price erosion heading into next week given gold’s poor fundamental and technical backdrop.

Though U.S. Gold coins are down from record sales levels in the month of January, partially an effect of seasonal sales, levels for the month of February indicate gold coins sales 283 percent higher year on year. Exchange traded funds, in the same time period, witnessed their biggest monthly outflow on record, accord to data from Bloomberg. The trend indicates the prominence of physical bullion in the current market environment. Sales levels for both gold and silver bullion at the U.S. Mint coincide with the political debates over the U.S. budget that began in earnest following the reelection of the U.S. President. Though Forbes has called the month long fiscal cliff debate of December a drag on commodities markets including precious metals, the stance of the U.S. budget environment itself appears to be driving more investors to the possession of physical bullion itself.

February 25, 2013 - Gold futures are holding onto the gains made in early trade on Monday as short covering and bargain hunting are evident in both the gold and silver market futures at the start of the week. Last week, both markets hit multi-month lows. A lower U.S. dollar index is supporting precious metals on Monday with U.S. gold futures for April delivery up $18.00 to $1,591.00 per troy ounce. The spot price of gold gained $9.20 to $1,591.25 per troy ounce. U.S. silver futures for May delivery gained $0.585 to $29.105 per troy ounce.

The International Monetary Fund has reported that the central banks of Russia, Kazakhstan, Turkey, and Azerbaijan have added to their official gold stockpiles in January. The news is modestly supportive of the spot price of gold and adds to building fundamentals in a long-term bull market.

Chairman of the Federal Reserve Ben Bernanke will give testimony on the U.S. economy to Congress on Tuesday and Wednesday. Traders and investors will be looking for new clues on the direction of U.S. monetary policy in the coming weeks and months.

]]>February 25, 2013 - Gold futures are holding onto the gains made in early trade on Monday as short covering and bargain hunting are evident in both the gold and silver market futures at the start of the week. Last week, both markets hit multi-month lows. A lower U.S. dollar index is supporting precious metals on Monday with U.S. gold futures for April delivery up $18.00 to $1,591.00 per troy ounce. The spot price of gold gained $9.20 to $1,591.25 per troy ounce. U.S. silver futures for May delivery gained $0.585 to $29.105 per troy ounce.

The International Monetary Fund has reported that the central banks of Russia, Kazakhstan, Turkey, and Azerbaijan have added to their official gold stockpiles in January. The news is modestly supportive of the spot price of gold and adds to building fundamentals in a long-term bull market.

Chairman of the Federal Reserve Ben Bernanke will give testimony on the U.S. economy to Congress on Tuesday and Wednesday. Traders and investors will be looking for new clues on the direction of U.S. monetary policy in the coming weeks and months.

The U.S. dollar index trades slightly lower early on Monday after hitting a six-month high in overnight trading. A lower U.S. dollar is beneficial to the gold market because it makes the price of gold more affordable for holders of foreign currency.

April gold futures are in the middle of a corrective bounce following recent lower prices. The next upside near-term breakout objective is to produce a close above the solid technical resistance at last week’s high of $1,618.80 per troy ounce. There is resistance at the overnight high of $1,594.00 and $1,600.00. There is support at the overnight low of $1,574.70 and Friday’s low of $1,569.30 per troy ounce.

May silver futures prices are in the middle of a corrective bounce on Monday after near-term technical damage on the daily chart. The next price breakout objective is a closing price above the solid technical resistance at $30.00 per troy ounce. There is solid technical support at $28.00 per troy ounce.

Chairman Ben Bernanke’s testimony to Congress will be the single most important market influence this week.

February 20, 2013 - The market is digesting data that indicates a possible global recovery, which is driving some investors to riskier assets. The German business sentiment, for example, reached its greatest level in three years on the optimism.

The price of gold is also coping with Asian bargain hunting as China, the world’s largest gold-buying population, returns from the weeklong Lunar New Year holiday.

James Steel, analyst with HSBC, recently spoke with Bloomberg about gold and silver, giving a forecast for silver.

Steel is looking beyond the current and rather temporary influences on the market by looking at influences that have ceased to affect the market. Included in his analysis, the gold market is no longer being affected by the disruptions of the fiscal cliff, worries of a hard landing in China, which have not materialized, and the withdrawal of Greece from the EU.

]]>February 20, 2013 - The market is digesting data that indicates a possible global recovery, which is driving some investors to riskier assets. The German business sentiment, for example, reached its greatest level in three years on the optimism.

The price of gold is also coping with Asian bargain hunting as China, the world’s largest gold-buying population, returns from the weeklong Lunar New Year holiday.

James Steel, analyst with HSBC, recently spoke with Bloomberg about gold and silver, giving a forecast for silver.

Steel is looking beyond the current and rather temporary influences on the market by looking at influences that have ceased to affect the market. Included in his analysis, the gold market is no longer being affected by the disruptions of the fiscal cliff, worries of a hard landing in China, which have not materialized, and the withdrawal of Greece from the EU.

These items, in Steel’s view have helped to support the gold market in their time, though their influence have diminished. However, the yield on gold is still supportive of bull market, even if the support derives from the negative yield on other investments. Negative real interest rates are supportive of gold bullion moving forward. Additionally, uncertainty in currency markets will make gold a very good investment.

Even at today’s price dynamics, Steel indicates that it was only a few years ago that President Obama took office and the price of gold was at $900 per troy ounce.

As such, he is moderately bullish on all the precious metals with adjustments up for the price of silver.

The rapid rise in investment of the precious metals, which was derided just a few years ago as the market prepared for unprecedented gains, may have leveled off somewhat in the current market dynamics as investors work to make sense of the market influences, but the vast potential of gold an silver to future markets is still there.

Indeed, the fundamental indicators point more toward gold and silver achieving real value in the future than to other investments such as equities which are currently at multi-year nominal highs yet barely breaking even with 2007 values.

The price disruptions of changing dynamics in the markets should be viewed as temporary in a fundamentally bullish environment.

January, 28 2013 - The price of U.S. gold eased slightly from a five week high as the price of silver extended its winning streak to seven sessions and closed at its highest price in six weeks.

The price of gold bullion in early trade on Monday showed a nominal pullback with U.S. gold futures for April delivery down $2.30, or 0.14 percent, to $1,656.40 per troy ounce. The spot price of gold is off $1,76, or 0.17 percent, to $1,655.84 per troy ounce. U.S. silver futures for March delivery are also down slightly ahead of the policy-making meeting of the U.S. Federal Reserve at $30.98 per troy ounce, a change of $0.22 or 0.69 percent.

A weaker U.S. dollar and the stimulus news from the Bank of Japan has been supporting gold as recent price points have brought the price of gold up to four week highs. Standard Bank analyst Walter de Wet wrote gold should find support from the BOJ stimulus as the liquidity created by the BOJ finds its way into the broader global economy. He added the bank still expects $1,700 to provide resistance and $1,660 to provide support.

]]>

January, 28 2013 - The price of U.S. gold eased slightly from a five week high as the price of silver extended its winning streak to seven sessions and closed at its highest price in six weeks.

The price of gold bullion in early trade on Monday showed a nominal pullback with U.S. gold futures for April delivery down $2.30, or 0.14 percent, to $1,656.40 per troy ounce. The spot price of gold is off $1,76, or 0.17 percent, to $1,655.84 per troy ounce. U.S. silver futures for March delivery are also down slightly ahead of the policy-making meeting of the U.S. Federal Reserve at $30.98 per troy ounce, a change of $0.22 or 0.69 percent.

A weaker U.S. dollar and the stimulus news from the Bank of Japan has been supporting gold as recent price points have brought the price of gold up to four week highs. Standard Bank analyst Walter de Wet wrote gold should find support from the BOJ stimulus as the liquidity created by the BOJ finds its way into the broader global economy. He added the bank still expects $1,700 to provide resistance and $1,660 to provide support.

The outlier in precious metals has been silver. March silver prices gained $0.262 or 0.8 percent to $32.439 per troy ounce as of midweek with the settlement price the highest since December 12.

Analysts with GoldCore said silver has now rallied for seven days due to the flood of inflows into silver-backed exchange traded funds and investment demand for coins and bars internationally.

The U.S. Mint exhausted its supply of American Silver Eagle bullion coins last week after just ten days of availability and when it resumes sales it will do so on an allocation or rationing basis. The Royal Canadian Mint has also instituted a rationing program to avoid a depletion of its reserves in what it states as very strong demand for silver coins.

The suspension of the 2013-dated American Silver Eagle followed the record for one-day sales when orders to authorized distributors reached 3,937,000 ounces in one day. Totals for the month of January up to the suspension of sales saw 6,007,000 ounces ordered. The Royal Canadian Mint moved 12.7 million silver bullion coins up to and through the third quarter of 2012 compared to the U.S. mint’s sales of silver eagles at 25.795 million.

A public campaign to bring Switzerland to repatriate all of its gold bullion currently held abroad is close a target of 100,000 signatures as a part of an attempt to trigger a referendum on the issue, accord to Swiss press reports.

The Gold Initiative has called for an end to sales of gold bullion by the Swiss national Bank, the storage of Swiss gold in Switzerland, and for gold bullion to account for at least one-fifth of the domestic central bank’s assets.

Figures published by the World Gold Council indicates Switzerland currently holds 1040.1 tonnes of gold, 11 percent of its total gold reserves, meaning 89 percent of the country’s gold is currently held overseas.

The move follows the recent announcement the Bundesbank of Germany is repatriating the country’s gold that has been stored in New York and Paris. The Bundesbank’s decision followed a string of Federal Court decisions that cast doubt on the central bank’s fulfilling its responsibilities for the gold. The Federal Court of Auditors ordered an audit of Germany’s foreign gold holdings, but the shadow on the Bundesbank, one of the most trusted institutions in German society, called for further steps.

]]>January 25, 2013 - A public campaign to bring Switzerland to repatriate all of its gold bullion currently held abroad is close a target of 100,000 signatures as a part of an attempt to trigger a referendum on the issue, accord to Swiss press reports.

The Gold Initiative has called for an end to sales of gold bullion by the Swiss national Bank, the storage of Swiss gold in Switzerland, and for gold bullion to account for at least one-fifth of the domestic central bank’s assets.

Figures published by the World Gold Council indicates Switzerland currently holds 1040.1 tonnes of gold, 11 percent of its total gold reserves, meaning 89 percent of the country’s gold is currently held overseas.

The move follows the recent announcement the Bundesbank of Germany is repatriating the country’s gold that has been stored in New York and Paris. The Bundesbank’s decision followed a string of Federal Court decisions that cast doubt on the central bank’s fulfilling its responsibilities for the gold. The Federal Court of Auditors ordered an audit of Germany’s foreign gold holdings, but the shadow on the Bundesbank, one of the most trusted institutions in German society, called for further steps.

The Bundesbank then announced plans to withdraw its entire 374-ton store of gold bullion from the Bank of France in Paris and 300 tons of the 1,500 tons currently held by the New York Federal Reserve. Germany possesses the world’s second-largest bullion reserves at 270,000 gold bars worth $177.5 billion, an amount second only to the gold held by the U.S.

As a part of its reasoning for the move to repatriation, the Bundesbank has said the German gold stockpile was relocated abroad during the Cold War amid fears of a possible Soviet invasion, but the concerns over a Soviet invasion no longer warrant keeping the gold overseas. About 30 percent of Germany’s gold reserves are currently being held in the country at the facilities of the Frankfurt-based Bundesbank.

In addition to repatriation, the Gold Initiative in Switzerland is suggesting that the Swiss National Bank could use its large reserves of euros to buy gold, an asset perceived as fundamentally sound in an uncertain geopolitical market.

January 23, 2013 - The latest weekly United States Mint numismatic product sales report details a number of products continuing the streak of sell-outs at the Mint. The most recent products to sell out include the 2012 Proof Gold Buffalo, the one ounce 2012 Proof Gold Eagle, and the remaining circulating quality S mint-marked 2012 America the Beautiful Quarter products.

Following roughly ten months of availability, the 2012 Proof Gold Buffalo sold out at the U.S. Mint. The one-ounce, 24 karat gold coin showed cumulative sales of 19,765 ounces, far below sales totals of 28,693 for the previous year’s issue and the a low in sales levels since the 2008 key date. The low issue could contribute to the coin’s popularity and value in the future.

The individual one-ounce 2012 Proof Gold Eagle also sold out after reaching sales of 14,848 ounces. Previously, the 2012-dated one-half ounce, one-quarter ounce, and one-tenth ounce coins have sold out. All individual options for the gold coins are currently unavailable, and sales of the remaining four coin set option have seen a big boost to 1,563 units for the weekly period, bringing cumulative totals to 7,298 sets for the year.

]]>January 23, 2013 - The latest weekly United States Mint numismatic product sales report details a number of products continuing the streak of sell-outs at the Mint. The most recent products to sell out include the 2012 Proof Gold Buffalo, the one ounce 2012 Proof Gold Eagle, and the remaining circulating quality S mint-marked 2012 America the Beautiful Quarter products.

Following roughly ten months of availability, the 2012 Proof Gold Buffalo sold out at the U.S. Mint. The one-ounce, 24 karat gold coin showed cumulative sales of 19,765 ounces, far below sales totals of 28,693 for the previous year’s issue and the a low in sales levels since the 2008 key date. The low issue could contribute to the coin’s popularity and value in the future.

The individual one-ounce 2012 Proof Gold Eagle also sold out after reaching sales of 14,848 ounces. Previously, the 2012-dated one-half ounce, one-quarter ounce, and one-tenth ounce coins have sold out. All individual options for the gold coins are currently unavailable, and sales of the remaining four coin set option have seen a big boost to 1,563 units for the weekly period, bringing cumulative totals to 7,298 sets for the year.

Additionally, a surge in sales for the 40-coin rolls of the 2012-S Denali National Park Quarter rolls has hastened a sell out. The U.S. Mint’s product line of bags and rolls containing circulating quality quarters with the S mintmark began attracting collector attention following other designs selling out sooner than anticipated. The Denali rolls had only been available for less than three months.

The price of silver, which has gained for seven straight sessions, is benefiting the sales at the U.S. Mint. The price of gold has been robust as well, though on Wednesday the House of Representatives passed a bill extending the debt ceiling by four months which drew money away from gold into equities. Silver has been tracking equities higher with its industrial applications. As of late trade on Wednesday, U.S. silver futures for March delivery gained $0.10, or 0.32 percent, to $32.28 per troy ounce.

Analysts polled by Reuters show a majority of those polled expect the price of silver to rise in 2013, over a minority seeing downward price action or a sideways market.

January 21, 2013 - A man has unearthed a massive gold nugget possibly worth more than $500,000 with a metal detector in Ballarat, Australia.

A local prospector discovered the nugget, at a weight of slightly more than five kilograms or 177 ounces, on Wednesday of last week. It was subsequently rushed in to the Ballarat Mining Exchange Gold Shop.

The exact location and the identity of the lucky prospector, described as a very private person, remain secret.

The very large gold nugget was found about 60 centimeters below the ground’s surface and found with a metal detector worth more than $6,000, the Minelab GPX-5000.

The market value of the weight of the gold is worth just under $300,000, a fairly nice take. However, the extreme rarity of the nugget, particularly its size, means it could be worth far more.

]]>January 21, 2013 - A man has unearthed a massive gold nugget possibly worth more than $500,000 with a metal detector in Ballarat, Australia.

A local prospector discovered the nugget, at a weight of slightly more than five kilograms or 177 ounces, on Wednesday of last week. It was subsequently rushed in to the Ballarat Mining Exchange Gold Shop.

The exact location and the identity of the lucky prospector, described as a very private person, remain secret.

The very large gold nugget was found about 60 centimeters below the ground’s surface and found with a metal detector worth more than $6,000, the Minelab GPX-5000.

The market value of the weight of the gold is worth just under $300,000, a fairly nice take. However, the extreme rarity of the nugget, particularly its size, means it could be worth far more.

Gold Shop Owner Cordell Kent, who holds the nugget said, if you are silly enough to melt it down, it would be worth just under $300,000 on market value. But as a nugget at this size and shape it’s worth significantly more than that.

Mr. Kent added he could not remember a nugget that big ever being found locally.

The gold shop owner said many nuggets are found locally, and the prospector who had found the massive 177-ounce nugget had found many small pieces of gold before, though none worth more than $1,000.

He said up until yesterday, the smallest piece the prospector had found was a nugget about the size of one-quarter ounce.

Kent said the area is so far into a gold rush and they have years and years and years of hope ahead of them. It’s unbelievable he added.

The nugget is expected to be sold to a collector or possibly a museum. Given the size of the nugget, special permission would be required to sell it for export overseas.

Kent is predicting both a new rush of business to the area as well as a revival of older interest. The goldfields have been a playground for prospectors and each find is regarded well, but the current find will certainly bring a lot of very strong interest in Ballarat. Kent sees the news as a type of hope, which is necessary on a gold hunt.

]]>http://www.gold-bullion.org/bullion/177-Ounces-of-Pure-Local-Gold-Found-with-Metal-Detector-in-Australia/#13587916564123http://www.gold-bullion.org/bullion/Bring-in-the-Bullion-Germany-Repatriates-Gold-From-US-and-France/
Wed, 16 Jan 2013 13:39:07 -0800January 16, 2013 - The Bundesbank, the central bank in Germany, is set to reclaim some of its large gold reserves which are currently held in Paris and New York. A move to audit German gold held overseas moved through German Federal Courts last year, provoking a demand that the gold be accounted for. Central banks typically hold some reserves of gold bullion in foreign central banks as a means of convenience in the backing of their currencies.

The Bundesbank has announced plans to withdraw the entire 450-ton store of gold bullion from the Bank of France in Paris and portion of the 1,500 tons of gold currently held by the New York Federal Reserve.

Germany boasts the world’s second-largest bullion reserves at 270,000 gold bars valued at $177.5 billion, an amount second only to the U.S.

]]>January 16, 2013 - The Bundesbank, the central bank in Germany, is set to reclaim some of its large gold reserves which are currently held in Paris and New York. A move to audit German gold held overseas moved through German Federal Courts last year, provoking a demand that the gold be accounted for. Central banks typically hold some reserves of gold bullion in foreign central banks as a means of convenience in the backing of their currencies.

The Bundesbank has announced plans to withdraw the entire 450-ton store of gold bullion from the Bank of France in Paris and portion of the 1,500 tons of gold currently held by the New York Federal Reserve.

Germany boasts the world’s second-largest bullion reserves at 270,000 gold bars valued at $177.5 billion, an amount second only to the U.S.

The German government will present a new plan for the management of its gold reserves on Wednesday, and has refrained from commenting on the reports ahead of the announcement.

RT reports the German stockpile was relocated abroad during the Cold War amid fears of a possible Soviet invasion. Only about 30 percent of Germany’s gold reserves are currently being held in the country at the facilities of the Frankfurt-based Bundesbank.

The German Court of Auditors issued a damning report that criticized the management of the Bundesbank’s foreign bullion stockpiles. The decision to repatriate was made by the Bundesbank, which was taken aback by the criticism as it is widely regarded as one of the most trustworthy institutions of German society.

The Bundesbank has said that the repatriation is not because it expects a worldwide crisis or because it wants to become more active in the gold market. Forbes reports that no matter what the Bundesbank officials say, the move is obviously because it has less confidence in the precious metal being stored outside of German borders.

Forbes also reports that it is interesting so many investment advisors and experts do not advocate individual investors holding much physical gold as an investment asset, though the physical ownership of gold is clearly an issue for the German central bank which is embroiled in the debt concerns of the most beleaguered Western nation, Greece. Additionally, the central banks of the world hold massive amounts of gold and most of them are currently in an accumulation phase.

January 14, 2013 - The price of gold retreated slightly on Friday, still holding onto a weekly gain that broke a six-week drop in the gold market that began during the fiscal cliff debates of December 2012.

In early trade on Monday, U.S. gold futures for February delivery gained $6.00, 0.36 per troy ounce, to $1,666.70 per troy ounce. The spot price of gold gained $4.33, 0.27 percent, to $1,667.45 per troy ounce.

Jeffrey Wright, managing director at Global Hunter Securities, said the overall trend is higher into next week. He added that volatility continues to be high in gold and silver with sharp intraday swings. He anticipates this level of movement to continue near term.

]]>January 14, 2013 - The price of gold retreated slightly on Friday, still holding onto a weekly gain that broke a six-week drop in the gold market that began during the fiscal cliff debates of December 2012.

In early trade on Monday, U.S. gold futures for February delivery gained $6.00, 0.36 per troy ounce, to $1,666.70 per troy ounce. The spot price of gold gained $4.33, 0.27 percent, to $1,667.45 per troy ounce.

Jeffrey Wright, managing director at Global Hunter Securities, said the overall trend is higher into next week. He added that volatility continues to be high in gold and silver with sharp intraday swings. He anticipates this level of movement to continue near term.

According to Kitco News, there is no majority of opinion on gold price direction for next week, with participants in the gold survey divided over the idea that fiscal policy uncertainty will support prices and other expecting prices to stay in the current range or move lower. Out of 33 participants, 23 responded with nine seeing prices up, seven seeing prices down, and seven seeing prices moving sideways or neutral.

U.S. Mint bullion coin sales are already at multi-month highs with more than two weeks left in January. Typically, January is a very strong month as the newly dated coins debut. Last week, the bureau began accepting orders for 2013-dated American Eagle Gold Coins and sales for 2013-dated American Eagle Silver Coins opened this week.

Gold bullion coins reached 54,000 ounce with 32,000 ounces in 22-karat American Eagle Gold Coins and 22,000 ounces in 24-karat American Buffalo Gold Coins. Gold Eagle sales at 97,500 ounces in January are higher than sales levels from nine different months in 2012. Gold Buffalo sales at 36,500 for the month are the strongest since March 2011.

Silver coins totaled 4,827,500 ounces this week as splits between 4,782,000 ounces of American Eagle Silver Coins and 9,100 America the Beautiful Five Ounce Silver Bullion Coins placed January 2013 as the third highest monthly total since the series started in 1986.

With more than two weeks left in the month of January, coins sales at the U.S. Mint will be watched by collectors and numismatists and are anticipated to continue at highs.

January 11, 2013 - With uncertainty surrounding global finance and central banks printing money that is rapidly putting advanced nations in debt, investors are looking for ways to diversify their assets and precious metals companies are catering to those wishes.

The movement into gold has been strong amongst many investors, including Manhattan power brokers who rent space in large vaults for their gold. Though the multi-million dollar gold of a financier in Manhattan may be suitable in bar form, the traditional investors need a much smaller denomination.

While smaller gold coins, which are available in the very popular one-tenth size, are the more common way to achieve a dispensable gold currency, the Combibar Gold Card, designed for a scary new world, has been introduced by Swiss precious metals firm Valcambi as an alternative way to divvy up your gold for payment and exchange.

Weighing 50 grams, or about 1.6 troy ounces, the card is made of 99.9 percent fine gold and can easily be broken into 1 gram pieces. Each gram is worth approximately the same amount as an ounce of silver.

]]>January 11, 2013 - With uncertainty surrounding global finance and central banks printing money that is rapidly putting advanced nations in debt, investors are looking for ways to diversify their assets and precious metals companies are catering to those wishes.

The movement into gold has been strong amongst many investors, including Manhattan power brokers who rent space in large vaults for their gold. Though the multi-million dollar gold of a financier in Manhattan may be suitable in bar form, the traditional investors need a much smaller denomination.

While smaller gold coins, which are available in the very popular one-tenth size, are the more common way to achieve a dispensable gold currency, the Combibar Gold Card, designed for a scary new world, has been introduced by Swiss precious metals firm Valcambi as an alternative way to divvy up your gold for payment and exchange.

Weighing 50 grams, or about 1.6 troy ounces, the card is made of 99.9 percent fine gold and can easily be broken into 1 gram pieces. Each gram is worth approximately the same amount as an ounce of silver.

Much like the larger bars of gold containing 100 or 1,000 ounces, the Combibar possesses the mintmark of the firm that produced it, though it, not the vault-ready large bars, will fit in your wallet.

The popularity of gold as an alternative currency to the troubled dollar has gained an unprecedented amount of support in the last few years. Prior, the world never questioned the dollar’s supremacy as a reserve currency and a viable legal tender. With the economic crises and the rapid devaluation of the dollar for purchase of goods and services, however, many are looking to gold as an alternative form of payment.

The Combibar is nothing new in this respect. A one-tenth ounce American Eagle Gold Coin is worth approximately three times as much, making purchases slightly higher in scale, but serves the same function.

Additionally, the importance of a government mintmark in the modern era of counterfeiting makes U.S. gold coins the standard bearer for the world. Counterfeiting is a multi-billion dollar a year industry which has targeted both gold coins and gold coin consumers. If using gold as a medium of exchange between two parties, the trusted U.S. government mintmark will probably put both the U.S. American Gold Eagle, and the party receiving payment, in higher favor.

January 9, 2013- Marc Faber is not giving up his precious metals, though gold prices may continue to drop.

Faber told CNBC that he believes the government will print money and that there will be competitive devaluation so he wants to hold gold as an insurance policy.

He added that he believes gold may not increase soon and a further correction is possible. Faber said he does not like any assets at this stage, though he has a diversified portfolio and he states he is not liquidating anything.

Faber, a PhD in economics and editor of the Gloom, Boom and Doom Report

]]>January 9, 2013 - Marc Faber is not giving up his precious metals, though gold prices may continue to drop.

Faber told CNBC that he believes the government will print money and that there will be competitive devaluation so he wants to hold gold as an insurance policy.

He added that he believes gold may not increase soon and a further correction is possible. Faber said he does not like any assets at this stage, though he has a diversified portfolio and he states he is not liquidating anything.

Faber, a PhD in economics and editor of the Gloom, Boom and Doom Report, which is read the world over by investors and market participants, said he feels deeply uncomfortable about the future of the global economy, the geopolitical situation, and social unrest in different countries.

In his January Market Commentary, Faber had predicted gold would fall to $1,550 to $1,600 per troy ounce. He also said he planned to increase his gold position on any further weakness, although he sees the strength of the U.S. dollar as a possible headwind for a strong gold rally.

Faber sees 2013 as a year of Capital Preservation. He writes there is something not quite right with the economy as evident from the recent performance of Wal-Mart, Tiffany, Genesco, and Kohl’s. He is disturbed about most asset markets because gains have been outsized since early 2009.

Faber states that in his opinion investors’ expectations about future returns on their assets are far too optimistic. He says he believes 2013 will not be a favorable year for holders of assets and his priority has shifted to the preservation of outsized gains he has achieved over the last three years.

Gold has been a staple of Faber’s outlook with his views reaching new audiences since the metal’s popularity following the economic crises of 2007-2008. Dubbed Dr. Doom by mainstream media, Faber has been an outspoken critic of the monetary policy of Ben Bernanke, particularly the mid-September announcement of an open-ended QE that prompted Faber to say Bernanke would print money until infinity.

But Faber, though outspoken, has been right before and has earned an audience of notable investors the world over. On the day the first round of Quantitative Easing was announced, Faber predicted the second. He has tied the housing crash in the U.S. and the policy of Ben Bernanke to the rapid inflation of renting, which has been up 9 percent on the year in parts of the U.S.

Ultimately, Faber’s projection for gold is very good, given the policies and market interventions by central banks. As he said, he has not liquidating anything and he plans to purchase more gold on the dips.

January 7, 2013 - The price of gold dipped following the release of the Federal Reserve’s FOMC minutes that indicated some members of the policy-making committee may be inclined to a slowing or cessation of current fiscal stimulus by the end of 2013. Market prices reacted in early trade on Friday with a dip of 3 percent, though the metal rebounded following the release of the U.S. nonfarm payrolls report by the Labor Department.

The Labor Department’s data revealed that the U.S. economy added 155,000 jobs during the month of December, short of the 160,000 expected by economists. The unemployment rate stood at 7.8 percent, which is the same as November’s upwardly revised figure.

]]>January 7, 2013 - The price of gold dipped following the release of the Federal Reserve’s FOMC minutes that indicated some members of the policy-making committee may be inclined to a slowing or cessation of current fiscal stimulus by the end of 2013. Market prices reacted in early trade on Friday with a dip of 3 percent, though the metal rebounded following the release of the U.S. nonfarm payrolls report by the Labor Department.

The Labor Department’s data revealed that the U.S. economy added 155,000 jobs during the month of December, short of the 160,000 expected by economists. The unemployment rate stood at 7.8 percent, which is the same as November’s upwardly revised figure. These numbers brought confidence back to markets as the Federal Reserve had previously announced it would maintain stimulus measures until the unemployment rate drops below 6.5 percent with inflation in check.

The volatility of precious metals on the news has stirred some markets, though sales of U.S. bullion coins at the U.S. Mint continue to exhibit a heightened demand for physical U.S. gold and silver bullion.

Additionally, the fundamental drivers of the gold market have not changed, though the cessation of fiscal stimulus at some point in the future does change the dynamics of what currently underpins the gold market.

Kurt Pfafflin, a senior broker with Daniels Trading, said he believes this is an overreaction, speaking of the day’s losses in the gold market. He went on to say he did not expect the Fed’s easing efforts to end any time soon and that low interest rates may continue to send investors looking for a higher yield into gold.

Mark Luschini, chief investment strategist of Janney Montgomery Scott, said that put a dent on one of the underpinnings of gold, which is expansionary monetary policy.

Of course, the concern of expansionary monetary policy has always been inflation, which is still a necessary by-product of the Federal Reserve’s accomplished intervention thus far.

Additionally, the concerns over the paper gold and silver that has been flooding the market in recent years are still very real. Rehypothecation schemes surfacing in late 2011 and early 2012 revealed that paper contracts for gold and silver bullion trade on the order of hundreds over the underlying physical, meaning for every hundred paper contracts, conservatively, there is one underlying ounce of gold bullion. The nature of the investment, and the possibility that a threshold of contract-holders could take delivery, indicates current values for gold and silver are low, given the underlying dynamics.

January 2, 2013 - 2012 brought the twelfth annual consecutive gain for gold, with prices up 7.1 percent to $1,674.95 per troy ounce as the New Year came in. Compare this to a 4.4 percent gain in copper, considered an economic indicator, and a 5.5 percent gain in the Dow Jones Industrial Index Average.

In early trade on Wednesday, gold tracked stocks and other commodities higher following an agreement by Congress to avert the U.S. fiscal cliff. Gold prices retreated slightly from gains topping 1 percent by mid-day with U.S. gold futures for February delivery up 0.89 percent, adding $14.90 to $1,690.70 per troy ounce. The spot price of gold added 0.85 percent, or $14.18, to $1,690.10 per troy ounce.

]]>January 2, 2013 - 2012 brought the twelfth annual consecutive gain for gold, with prices up 7.1 percent to $1,674.95 per troy ounce as the New Year came in. Compare this to a 4.4 percent gain in copper, considered an economic indicator, and a 5.5 percent gain in the Dow Jones Industrial Index Average.

In early trade on Wednesday, gold tracked stocks and other commodities higher following an agreement by Congress to avert the U.S. fiscal cliff. Gold prices retreated slightly from gains topping 1 percent by mid-day with U.S. gold futures for February delivery up 0.89 percent, adding $14.90 to $1,690.70 per troy ounce. The spot price of gold added 0.85 percent, or $14.18, to $1,690.10 per troy ounce.

Gains in the gold market in recent years have been so strong that they put the current gains under scrutiny. With a 10.1 percent rise over the course of 2011 and a 30 percent gain in 2010, the rigor of the bull market at 7.1 percent for 2012 has been a question for investors, though analysts have stopped far short of calling a bear market even with the differential in gains.

Saxo Bank vice-president Ole Hansen said the deal does not seem like a long-term durable solution to the U.S. debt, but it’s given the gold market an excuse to move higher, helped by the dollar.

Edward Meir, metals analyst at brokerage INTL FC Stone, said the colossal failure of political will to get America’s fiscal house in order should provide fodder for the gold bugs to bid prices higher. He added they suspect gold will likely do better over the next few weeks.

Central bank policy has been a strong driver for the gains in the gold market since the economic crises of 2008. Following the reelection of U.S. President Barack Obama, markets priced in expectations that central bank policy under his administration would continue with accommodative monetary policy.

UBS, in its 2013 outlook, said the first quarter of 2013 has already suffered economic uncertainty on the outcome of the U.S fiscal cliff, warranting a defensive posture. The bank therefore thinks gold and platinum are an outright buy at present levels as both metals have very low supply elasticity and are key beneficiaries of loose monetary policy. In the case of gold, the outlook said, UBS still targets the level of $1,950 per troy ounce over the next three months.

]]>http://www.gold-bullion.org/bullion/Gold-Up-in-2012-Looks-to-2013/#13571640054108http://www.gold-bullion.org/bullion/Gold-Bulls-on-Debt-Purchases-and-Record-Gold-Holdings/
Fri, 28 Dec 2012 13:05:14 -0800December 28, 2012 - Gold traders exhibit more bullish sentiment than in the past four months as lawmakers draw ever closer to the deadline for budget talks and hedge funds have been forced to cut bets on higher prices.

A recent Bloomberg survey reveals that 15 of 19 analysts expect the prices for gold to rise in the next week, with only one being bearish and three being neutral. This is the highest proportion of gold bulls in such a survey since August 24, 2012.

As bullion is headed toward the twelfth annual consecutive gain, the longest running rally in the asset for the past nine decades, central banks from Europe to China continue to pledge more action to spur economic growth. Despite the volatility in the gold market since the reelection of the U.S. President and the ensuing political debate over the fiscal cliff, investors

]]>December 28, 2012 - Gold traders exhibit more bullish sentiment than in the past four months as lawmakers draw ever closer to the deadline for budget talks and hedge funds have been forced to cut bets on higher prices.

A recent Bloomberg survey reveals that 15 of 19 analysts expect the prices for gold to rise in the next week, with only one being bearish and three being neutral. This is the highest proportion of gold bulls in such a survey since August 24, 2012.

As bullion is headed toward the twelfth annual consecutive gain, the longest running rally in the asset for the past nine decades, central banks from Europe to China continue to pledge more action to spur economic growth. Despite the volatility in the gold market since the reelection of the U.S. President and the ensuing political debate over the fiscal cliff, investors have bought 60 more this year through gold-backed exchange-traded products compared with 2011 and sales to authorized distributors at the U.S. Mint have been breaking records with the American Silver Eagle Coin showing 33,742,500 ounces moving this year, the third best year in the coin’s 27-year history.

On December 12, the Federal Reserve said it would buy $45 billion of Treasury securities a month from January, adding to the $40 billion a month of existing mortgage-debt purchases announced in mid-September. During the first two rounds of monetary easing from December 2008 through June 2011, the Fed bought $2.3 trillion of debt and gold rose 70 percent. The European Central Bank, the Bank of Japan, and China have all announced further activity to bolster their economies.

Despite the lid on a gold rally imposed by the uncertainty of the U.S. fiscal cliff, specifically the tax situation of 2013, which has caused hedge funds to cut wagers on higher gold prices by 43 percent, ETP holdings gained to 274.9 metric tons this year and reached a record 2,632.5 tons as of December 20, 2012, which is equal to almost a year of mine production. The staggering amount of ETP holdings, which begs questions as to the availability of the underlying asset as no physical is delivered in such transactions, reveals another side of the gold market that is not currently shown in the spot price.

]]>http://www.gold-bullion.org/bullion/Gold-Bulls-on-Debt-Purchases-and-Record-Gold-Holdings/#13567287144107http://www.gold-bullion.org/bullion/Gold-Futures-Move-Higher-as-Dollar-Declines/
Wed, 26 Dec 2012 09:39:47 -0800December 26, 2012 - In post-holiday trade on Wednesday gold futures moved higher as the U.S. weakened under the pressure of the U.S. fiscal cliff debate.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at $1,666.15 per troy ounce, accounting for a 0.4 percent gain on the day.

In very early trade, the spot price of gold had fallen as much as 0.4 percent to $1,651.62 per troy ounce and stabilized at $1,655.73 until a morning surge brought the precious metal to a high of $1,669.00 per troy ounce. Gold shed 2.3 percent last week following the release of data indicating consumer spending, durable-goods orders, and industrial output increased in November, stirring concern over the breadth of stimulus from the Federal Reserve. Prior to this morning’s surge, gold had still been up 5.9 percent for the year, accounting for the twelfth annual gain in the precious metal.

President Obama has cut his holiday vacation short in order to return to Washington and oversea the conclusion to the fiscal cliff debate.

Overseas, indications are strong that demand is picking up after months of a strong U.S. dollar pricing out many retailers. A strong greenback causes gold to be more expensive for holders of foreign currency, cutting demand.

Afshin Nabavi, a senior vice president at bullion refiner MKS Finance in Geneva, said the dollar is weakening and also we are seeing good physical demand from China as well as India.

Gold prices had dropped to a four-month low at $1,636.45 per troy ounce in late trading last week as technical selling was triggered after prices broke below their 200- day moving average. As the price levels drop and the U.S. dollar yields some of its recent strength, the demand overseas is picking up after many long of months of subdued demand, particularly in India, which also suffers from a weak rupee.

The conclusion of the fiscal cliff is likely to arrive in the coming days and that will be the next big short-term influence on the gold bullion market. Initially, there may be a drop in prices as market dynamics look elsewhere for the support it gained from fiscal uncertainty, though safe-haven buying appears to be more routine for investors and overseas markets picking up are likely to stem any heavy losses. The strong long- term bull market that has been established in gold over the last twelve years will continue regardless on central bank policy that has been effected until 2014 the earliest.

]]>December 26, 2012 - In post-holiday trade on Wednesday gold futures moved higher as the U.S. weakened under the pressure of the U.S. fiscal cliff debate.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at $1,666.15 per troy ounce, accounting for a 0.4 percent gain on the day.

In very early trade, the spot price of gold had fallen as much as 0.4 percent to $1,651.62 per troy ounce and stabilized at $1,655.73 until a morning surge brought the precious metal to a high of $1,669.00 per troy ounce. Gold shed 2.3 percent last week following the release of data indicating consumer spending, durable-goods orders, and industrial output increased in November, stirring concern over the breadth of stimulus from the Federal Reserve. Prior to this morning’s surge, gold had still been up 5.9 percent for the year, accounting for the twelfth annual gain in the precious metal.

President Obama has cut his holiday vacation short in order to return to Washington and oversea the conclusion to the fiscal cliff debate.

Overseas, indications are strong that demand is picking up after months of a strong U.S. dollar pricing out many retailers. A strong greenback causes gold to be more expensive for holders of foreign currency, cutting demand.

Afshin Nabavi, a senior vice president at bullion refiner MKS Finance in Geneva, said the dollar is weakening and also we are seeing good physical demand from China as well as India.

Gold prices had dropped to a four-month low at $1,636.45 per troy ounce in late trading last week as technical selling was triggered after prices broke below their 200- day moving average. As the price levels drop and the U.S. dollar yields some of its recent strength, the demand overseas is picking up after many long of months of subdued demand, particularly in India, which also suffers from a weak rupee.

The conclusion of the fiscal cliff is likely to arrive in the coming days and that will be the next big short-term influence on the gold bullion market. Initially, there may be a drop in prices as market dynamics look elsewhere for the support it gained from fiscal uncertainty, though safe-haven buying appears to be more routine for investors and overseas markets picking up are likely to stem any heavy losses. The strong long- term bull market that has been established in gold over the last twelve years will continue regardless on central bank policy that has been effected until 2014 the earliest.

]]>http://www.gold-bullion.org/bullion/Gold-Futures-Move-Higher-as-Dollar-Declines/#13565435874105http://www.gold-bullion.org/bullion/Gold-Executives-Bullish-for-2013/
Mon, 24 Dec 2012 13:50:27 -0800December 24, 2012 - More than 80 percent of gold executives expect a rise in the price of gold in 2013, according to the PwC Gold Price report was released last week. The report surveyed major gold mining operations and junior gold mining operations.

The high gold prices since 200 add substance to the gold executives’ optimism, according to Michael Cinnamond, partner and leader of the B.C. mining practice at PricewaterhouseCoopers.

The report found that reasons to be bullish on gold lie in its relatively narrow applications as jewelry and a store of wealth in light of the political uncertainties in the U.S. and the economic uncertainty in Europe. Additionally, central bank buying continues to underpin higher gold prices, which is a reversal of the last two decades in which nations were net sellers of gold.

As the price of gold stabilizes following the worst week in four months, many investors and analysts are looking forward to the forecast for gold in the coming year. The fiscal cliff debate has created a serious drag in the raw commodities markets and investors, particularly those who booked profits and went on holiday vacation, are now forecasting into the New Year when the cliff debate will have found some reasonable resolution so markets can continue on underlying fundamentals.

In Cinnamond’s view the higher prices in gold have coupled to a shift in focus by gold executives to keep a lid on the cost of production. He points out that it’s not growth at all costs anymore as executives are being more careful about what they’re acquiring.

An analysis included in the report shows that 20 of the 46 largest TSX-listed gold mining companies have cash reserves greater than $500 million. Cinnamond said the cash reserves, combined with the shortage of available cash for smaller junior gold companies, means senior mining companies are looking for juniors to buy out.

Cinnamond’s analysis states that targeted smaller companies can benefit from the exchange provided their project is sufficiently large or capable of being developed in the near term. He believes smaller companies are encountering the cash shortage in the face of significant opportunities for projects.

]]>December 24, 2012 - More than 80 percent of gold executives expect a rise in the price of gold in 2013, according to the PwC Gold Price report was released last week. The report surveyed major gold mining operations and junior gold mining operations.

The high gold prices since 200 add substance to the gold executives’ optimism, according to Michael Cinnamond, partner and leader of the B.C. mining practice at PricewaterhouseCoopers.

The report found that reasons to be bullish on gold lie in its relatively narrow applications as jewelry and a store of wealth in light of the political uncertainties in the U.S. and the economic uncertainty in Europe. Additionally, central bank buying continues to underpin higher gold prices, which is a reversal of the last two decades in which nations were net sellers of gold.

As the price of gold stabilizes following the worst week in four months, many investors and analysts are looking forward to the forecast for gold in the coming year. The fiscal cliff debate has created a serious drag in the raw commodities markets and investors, particularly those who booked profits and went on holiday vacation, are now forecasting into the New Year when the cliff debate will have found some reasonable resolution so markets can continue on underlying fundamentals.

In Cinnamond’s view the higher prices in gold have coupled to a shift in focus by gold executives to keep a lid on the cost of production. He points out that it’s not growth at all costs anymore as executives are being more careful about what they’re acquiring.

An analysis included in the report shows that 20 of the 46 largest TSX-listed gold mining companies have cash reserves greater than $500 million. Cinnamond said the cash reserves, combined with the shortage of available cash for smaller junior gold companies, means senior mining companies are looking for juniors to buy out.

Cinnamond’s analysis states that targeted smaller companies can benefit from the exchange provided their project is sufficiently large or capable of being developed in the near term. He believes smaller companies are encountering the cash shortage in the face of significant opportunities for projects.

December 21, 2012- 2012 brought higher gold and silver prices but fell short of retracing record levels from 2011. To date, silver outperformed gold on the year with an increase of 9.4 percent against gold’s 6.6 percent.

In early trade on Friday, gold continued to stabilize after falling to multi-month lows on the most recent iterations of the fiscal cliff debate. After touching $1,635.09 on Thursday, gold climbed back to $1,649.20 per troy ounce as U.S. gold futures for February delivery gained 0.25 percent to $1,650.00. The drop, following the failure of House Speaker John Boehner to force concessions from the President on the U.S. fiscal cliff, has so far taken 3 percent from the price of gold.

Analysts have begun voicing the difficulty in teasing out the strands of the precious metals markets because in the past year they have generally performed in counter-intuitive ways, the current drop on the fiscal cliff being no different.

]]>December 21, 2012 - 2012 brought higher gold and silver prices but fell short of retracing record levels from 2011. To date, silver outperformed gold on the year with an increase of 9.4 percent against gold’s 6.6 percent.

In early trade on Friday, gold continued to stabilize after falling to multi-month lows on the most recent iterations of the fiscal cliff debate. After touching $1,635.09 on Thursday, gold climbed back to $1,649.20 per troy ounce as U.S. gold futures for February delivery gained 0.25 percent to $1,650.00. The drop, following the failure of House Speaker John Boehner to force concessions from the President on the U.S. fiscal cliff, has so far taken 3 percent from the price of gold.

Analysts have begun voicing the difficulty in teasing out the strands of the precious metals markets because in the past year they have generally performed in counter-intuitive ways, the current drop on the fiscal cliff being no different.

As an example, the budget debate was a support for the market since the month of November as the uncertainty it engender drove many investors to put money in precious metals. This week, however, it has been behaving more like a risk-asset than a safe-haven asset as investors take profits and leave the market until after the holidays.

Many geopolitical and economic forces would place the price of gold higher than it currently is, including the ongoing and endemic crisis in Europe, the further announcement of $85 billion per month in monetary stimulus from the Federal Reserve, and record sales of American Eagle Gold and Silver Coins at the U.S. Mint.

However, the crisis in Europe is completely underreported as markets focus somewhat shortsightedly on the fiscal cliff, the stimulus announced by the Federal Reserve in September and this month did not give the kind of surge to precious metals seen in previous episodes of QE, and the sales of coins appears to be an underground story as physical demand for gold and silver coins decouples from the current market price dynamics.

Profit-taking going into the holidays, sell-orders triggered in thin holiday trading, and an irrational market reaction to political debate appear to be the dominant market newsmakers.

Indeed, projections for gold almost unanimously place the precious metal at higher price levels in 2013 than experienced early this week, prior to the 3 percent drop. Banks including UBS and Bank of America see higher prices for metals next year, forecasting gold over $2,000 per troy ounce and silver outperforming gold on a percentage basis.

December 19, 2012 - The price gold continued to steady in early trade on Wednesday following a slide to 3-1/2 month lows during the previous session as stocks rallied and the euro hit a multi-month high against the dollar on relative progression in U.S. fiscal cliff negotiations.

The spot price of gold hit $1,669.26 per tory ounce, little changed from the $1,669.54 per troy ounce from late Tuesday. U.S. gold futures for February shed a scan $0.90 to $1,673.70.

Widely acknowledged by many analysts, the U.S. fiscal cliff has brightened growth prospects for raw commodities, particularly precious metals. Some analysis has placed uncertainty over the fiscal cliff

]]>December 19, 2012 - The price gold continued to steady in early trade on Wednesday following a slide to 3-1/2 month lows during the previous session as stocks rallied and the euro hit a multi-month high against the dollar on relative progression in U.S. fiscal cliff negotiations.

The spot price of gold hit $1,669.26 per tory ounce, little changed from the $1,669.54 per troy ounce from late Tuesday. U.S. gold futures for February shed a scan $0.90 to $1,673.70.

Widely acknowledged by many analysts, the U.S. fiscal cliff has brightened growth prospects for raw commodities, particularly precious metals. Some analysis has placed uncertainty over the fiscal cliff as a main driver for precious metals since the U.S. election.

There has been some confusion, however, over the apparent benefit to precious metals and the price volatility in markets over the past weeks. Businesses remain reluctant to invest in precious metals because of the uncertainty surrounding potential automatic tax rises and benefit cuts if the U.S. Congress doesn’t agree to a new fiscal program. Minimal market data is set to be released in the final weeks of the year and budget talks will be a strong influence on markets.

During this time, holdings of gold ETPs extended their all-time highs to $84.6 billion during a move by investors to hedge against worst-case outcomes from the cliff discussions. While we have heard quite a bit from the media about the fiscal cliff, we do not always hear the strong moves investors are making in response to it, which is significant in terms of explaining how big an issue it really is.

Additionally, since the reelection of the President, the physical bullion market has been on a sales spree with orders for coins from the U.S. Mint to distributors at multi-month and multi-year highs. Sales for American Eagle Gold Coins reached 136,500 ounces in November with an additional 45,500 ounces being sold so far in December. The Mint has sold out of 2012-dated American Eagle Silver Coins as of Monday with 33,742,500 ounces being sold for the year, the third highest sales level for the coin since the American Eagle Silver Coin was introduced in 1987. Only 2011 with 39,868,500 ounce and 2010 with 34,662,500 ounces produced better sales levels.

The statistics from the U.S. Mint indicate a far more aggressive physical market than the volatility of the spot price and futures market would suggest. While uncertainty over the fiscal cliff is clearly a main driver, little about it needs to be understood to see the effect. Investors are buying gold to hedge risk and store wealth.

December 18, 2012 - In late trade yesterday, U.S. gold futures for February delivery gained a modest $0.80 to $1,697.80 per troy ounce during a quiet, pre-holiday session in which the price of gold steadied. The spot price of gold came in a slight $0.40 higher to $1,697.00 per troy ounce. March Comex silver shed a very slim $0.034 to $32.265 per troy ounce.

Partially driving the advance in gold futures is a report showing manufacturing in the New York area contracting more than expected, which has increased expectations for stimulus from the Federal Reserve.

The Federal Reserve Bank of New York’s general economic index dropped to minus 8.1, a wider margin than the minus 1 median forecast in a Bloomberg survey of economists. Last week, the central bank pledge to buy an additional $45 billion a month of Treasury securities beginning in January, expanding the current asset-purchasing program which is pumping $40 billion per month in to markets until the unemployment rate in the U.S. falls below 6.5 percent.

]]>December 18, 2012 - In late trade yesterday, U.S. gold futures for February delivery gained a modest $0.80 to $1,697.80 per troy ounce during a quiet, pre-holiday session in which the price of gold steadied. The spot price of gold came in a slight $0.40 higher to $1,697.00 per troy ounce. March Comex silver shed a very slim $0.034 to $32.265 per troy ounce.

Partially driving the advance in gold futures is a report showing manufacturing in the New York area contracting more than expected, which has increased expectations for stimulus from the Federal Reserve.

The Federal Reserve Bank of New York’s general economic index dropped to minus 8.1, a wider margin than the minus 1 median forecast in a Bloomberg survey of economists. Last week, the central bank pledge to buy an additional $45 billion a month of Treasury securities beginning in January, expanding the current asset-purchasing program which is pumping $40 billion per month in to markets until the unemployment rate in the U.S. falls below 6.5 percent.

Matt Zeman, a strategist at Kingsview Financial in Chicago, said we’re seeing a knee-jerk reaction to the factory data. He added the thinking is that this lays the groundwork for even more Fed action.

Bloomberg also reports that gold declined for a third day before steadying as the dollar’s strength put a dampener on demand for alternative investment and countered record investor holdings in exchange-traded products. The U.S. dollar has been at multi-month highs against the euro, with a slight ease arriving only recently. A strong dollar makes the purchase of gold more expensive for holders of foreign currency, impacting the physical demand in the market.

Recently, the strong dollar has also been a contributory factor to a sales surge in American gold and silver coins. Following the Presidential election, sales of American Eagle Gold and Silver Coins surged with gold coins jumping 130 percent in the month of November. American Eagle Silver Coins year to date have reached 33,510,500 ounces, only the third time since the coin’s introduction in 1986 for sales to surpass the 33,000,000-ounce level.

Concern over the fiscal cliff and the financial climate continue to fuel gold and silver coin and bullion sales. The recent data from the New York manufacturers, which suggests more fiscal stimulus, will also bolster the demand for physical gold and silver bullion.

December 14, 2012 - Following a drop in gold price below the $1,700 per troy ounce level, investors appear to be consolidating their forecasts along with the metals.

U.S. gold futures for February delivery gained $1.20 to $1,698.00 per troy ounce in early trade on Friday as the spot price of gold dropped $0.80 to $1,697.00 per troy ounce. Comex silver for March delivery gained $0.225 to $32.565 per troy ounce. The outlook for both metals is a continued consolidation with mixed bias on Friday.

With gold looking closer to resistance on the downside than the upside and silver down for the third consecutive week, many analysts are looking at the market and

]]>December 14, 2012 - Following a drop in gold price below the $1,700 per troy ounce level, investors appear to be consolidating their forecasts along with the metals.

U.S. gold futures for February delivery gained $1.20 to $1,698.00 per troy ounce in early trade on Friday as the spot price of gold dropped $0.80 to $1,697.00 per troy ounce. Comex silver for March delivery gained $0.225 to $32.565 per troy ounce. The outlook for both metals is a continued consolidation with mixed bias on Friday.

With gold looking closer to resistance on the downside than the upside and silver down for the third consecutive week, many analysts are looking at the market and deciphering the reasons for the action.

Ed Meir, analyst at brokerage INTL FC Stone, said bulls were making the argument that the central bank would remain easy, at least until 2015, helping provide an element of support for gold. He added that bears countered that there would not be any additional easing in the pipeline between now and 2015 and also pointed out that the Fed did outline specific targets at which point it would start shrinking its bloated balance sheet.

The Fed action of augmenting the current bond buying with an additional $45 billion on a monthly basis until the unemployment rate drops below 6.5 percent. This has placed some markets in a bit of a catch-22 as Federal stimulus bolsters the market but the closer the unemployment levels get to a 6.5 percent low the more the market will anticipate the removal of the Fed’s bond-buying.

Meir continues by saying no matter which side of the Fed argument one is on, he suspects that much of Thursday’s selling was also triggered by the fact that investors are becoming increasingly nervous about the lack of progress emanating from fiscal cliff talks.

The President met with House Speaker John Boehner yesterday but no agreement was reached.

Demand to buy gold in physical bullion form has seen a major resurgence in recent weeks according to Standard Bank’s proprietary Gold Physical Flows Index.

Sales at the U.S. Mint, while cooling slightly in the current week, broke records in November and the first week of December for gold and silver bullion.

]]>http://www.gold-bullion.org/bullion/Reaction-to-Fed-Moves-Give-Market-Pause-as-Support-Grows-for-Bearish-Stance/#13555184744098http://www.gold-bullion.org/bullion/Gold-Futures-Trading-Near-One-Week-High-on-Stimulus-Speculation/
Wed, 12 Dec 2012 11:05:46 -0800December 12, 2012 - In early trade on Wednesday, gold gained to the highest levels in almost a week in New York on speculation the Federal Reserve will announce asset purchases at the press conference concluding the Federal Open Markets Committee’s last meeting of the year.

The dollar has fallen against the euro in anticipation of the conference, a signal that markets generally are betting on some form of stimulus. The Operation Twist program of bond-buying is set to expire and the FOMC may decide to extend the program orinitiate a new program that will continue the purchase of longer term bonds in order to keep near-term interest rates low.

]]>December 12, 2012 - In early trade on Wednesday, gold gained to the highest levels in almost a week in New York on speculation the Federal Reserve will announce asset purchases at the press conference concluding the Federal Open Markets Committee’s last meeting of the year.

The dollar has fallen against the euro in anticipation of the conference, a signal that markets generally are betting on some form of stimulus. The Operation Twist program of bond-buying is set to expire and the FOMC may decide to extend the program or initiate a new program that will continue the purchase of longer term bonds in order to keep near-term interest rates low.

Amid the market action there is widespread expectation that the fiscal stimulus will see increases in precious metal prices. The stimulus programs of the Federal Reserve have been bullish for raw commodities, including gold and silver bullion.

Edel Tully, analyst with UBS in London, wrote today in a report that the most important precondition for gold gains is loose monetary policy. He continued that UBS doesn’t think gold has priced in a sizable expansion of the Fed’s balance sheet beyond current levels, but they do think that quantitative easing will again loom large for the first half of 2013.

U.S. gold futures for February delivery gained 0.4 percent to $1,716.70 per troy ounce in very early trade in New York. The price of gold reached $1,718.80 on December 10, the highest prices since December 4. The spot price of gold gained $7.50 per troy ounce to $1,717.10.

Data compiled by Bloomberg shows holdings in gold-backed exchange-traded products dropped 1.9 metric tons yesterday from the record to 2,627.4 tons. Gold prices are in line for a twelfth consecutive annual gain as central banks from the U.S. to China continue to pledge more measures to stimulate economic growth.

David Govett, head of precious metals at Marex Spectron, said if the Fed comes out and says it is going to put $45 billion into long term Treasuries on the face of it that is good for gold. He also believes that if no bond-buying is announced gold is vulnerable to the downside.

UBS continues that for the bank the most important precondition for gold gains is loose monetary policy, adding this overrides many other potential gold drivers.

]]>http://www.gold-bullion.org/bullion/Gold-Futures-Trading-Near-One-Week-High-on-Stimulus-Speculation/#13553391464096http://www.gold-bullion.org/bullion/Interesting-Times-are-the-Best-Times-to-Own-Tangible-Gold/
Mon, 10 Dec 2012 11:13:14 -0800December 10, 2012 - In early morning trading Monday safe-haven demand, bargain hunting, and short covering brought U.S. gold futures for February delivery up $8.40 to $1,713.80 per troy ounce. The spot price of gold quoted up $8.10 to $1,713.00 per troy ounce as Comex silver for March delivery gained $0.259 to $33.39 per troy ounce.

Last week saw gold and silver down by 0.53 percent and 0.93 percent respectively. There has been intense pressure on precious metals from a strong U.S. dollar, though the pressure broke last week with debt agreement for Greece that brought the euro off a two-month low against the dollar.

Friday’s U.S. non-farm payrolls data showed higher than expected growth with 146,000 jobs being added and the unemployment rate in the U.S. dropping to 7.7 percent.

]]>December 10, 2012 - In early morning trading Monday safe-haven demand, bargain hunting, and short covering brought U.S. gold futures for February delivery up $8.40 to $1,713.80 per troy ounce. The spot price of gold quoted up $8.10 to $1,713.00 per troy ounce as Comex silver for March delivery gained $0.259 to $33.39 per troy ounce.

Last week saw gold and silver down by 0.53 percent and 0.93 percent respectively. There has been intense pressure on precious metals from a strong U.S. dollar, though the pressure broke last week with debt agreement for Greece that brought the euro off a two-month low against the dollar.

Friday’s U.S. non-farm payrolls data showed higher than expected growth with 146,000 jobs being added and the unemployment rate in the U.S. dropping to 7.7 percent. The data has been questioned by many mainstream news sources on the basis that Hurricane Sandy as well as the Thanksgiving holiday may have skewed data results.

Markets look forward to the Federal Reserve’s FOMC meeting set to occur tomorrow and Wednesday with most expecting the central bank to declare continued bond purchases of $45 billion per month and analysts believing this shift is not yet priced into gold and would lead to higher prices in the short term.

The Operation Twist bond-buying program is set to expire and it is likely the FOMC meeting will bring about a continuation of the program or the announcement of a new program. Many market analysts believe an announcement of an outright QE4 is possible. Such news would be bullish for the raw commodities, including gold and silver.

Continued uncertainty out of the Eurozone also continues to be supportive of safe-haven interest in precious metals. Despite the agreement on a debt deal for Greece early last week, Germany’s central bank cautioned on Friday that the European Union’s strongest economy may slide into a recession. The news hit markets strongly as Germany until this point has been a bulwark against recession in Europe.

Italian Prime Minister Mario Monti announced his intention to resign early from his post, sparking a drop in Italian 10 year bonds with yields rising from 4.448 percent to 4.89 percent.

Safe haven demand is a main driver of gold and silver at this time with bargain buying on the dips continuing to be strong. The political uncertainty in Europe and the United States continues to generate demand, but the majority of the buying at this juncture is occurring at dips and low price-points, considered bargain buying.

The release of the U.S. job’s report instigated the move in bullion back above the $1,700 per troy ounce level, which came in with better-than-expected results. Non-farm payrolls increased by 146,000 jobs last month, according to statistics released by the Labor Department on Friday, with the unemployment rate dropping to 7.7 percent from 7.9 percent.

]]>December 7, 2012 - The spot price of gold dropped 0.2 percent to $1,701.60 per troy ounce, rebounding from a one-month low at $1,683.79 as U.S. gold futures for December delivery gained $1.40 to $1,703.20 per troy ounce.

The release of the U.S. job’s report instigated the move in bullion back above the $1,700 per troy ounce level, which came in with better-than-expected results. Non-farm payrolls increased by 146,000 jobs last month, according to statistics released by the Labor Department on Friday, with the unemployment rate dropping to 7.7 percent from 7.9 percent.

Standard Bank analyst Steve Barrow anticipated U.S. payroll data as the focus of the day for markets, but saw reasons why there would be muted reactions. He sees markets as clearly fixated by the fiscal cliff and it is doubtful that any data is going to have a significant impact until the cliff is sorted. He also said economic growth this quarter will be written off due to the impact of Hurricane Sandy.

Expectations are that the employment data out today will figure largely into the policy-making decisions of the Federal Reserve as the FOMC convenes early next week to decide whether to allow the Operation Twist bond-buying program to expire and whether to purchase new bonds with the initiation of QE4.

Ole Hansen, head of commodity strategy at Saxo Bank, said a weaker-than-expected number could have a gold positive impact on the Fed meeting. However, it could also help force the hands of U.S. politicians as they can see that the economy is hurting from the lack of knowledge about where it stands on January 1.

Bullishness among gold traders has fallen to its lowest level in seven weeks according to a survey conducted by Bloomberg, which found 14 of 31 analysts expect the gold price to rise in the next week, accounting for the lowest proportion since October 19.

Jeffrey Sica, president of SICA Wealth Management in New Jersey, said we will get momentum again, but I don’t think it’s going to come until after the first of the year. He added that hedge funds that have underperformed and need to raise liquidity for redemptions are likely to sell their winners.

]]>http://www.gold-bullion.org/bullion/Momentum-in-Gold-Bullion-Unlikely-Until-New-Year/#13549142884091http://www.gold-bullion.org/bullion/Gold-Firm-on-Corrective-Bounce-Bargain-Hunting/
Wed, 05 Dec 2012 13:16:42 -0800December 5, 2012 - Following Tuesday’s selling pressure that brought gold to $1,690.64 per troy ounce, the weakest prices in the market since November 6, gold rebounded above the $1,700 per troy ounce level as the precious metal tracked gains in wider markets, particularly European equities. U.S. gold futures for February delivery gained $5.00 to $1,701.20 per troy ounce in early trade on Wednesday. The spot price of gold gained $2.70 to $1,700.00 per troy ounce. Silver also gained at $0.177 to $32.98 per troy ounce.

Overnight, Asian stocks rallied on news that Chinese government officials are seeking to bolster the economy with more construction projects. The news translated over to Europe, fresh from an agreement on Greece’s debt, which brought the euro to six-week highs against the dollar and European stocks higher.

]]>December 5, 2012 - Following Tuesday’s selling pressure that brought gold to $1,690.64 per troy ounce, the weakest prices in the market since November 6, gold rebounded above the $1,700 per troy ounce level as the precious metal tracked gains in wider markets, particularly European equities. U.S. gold futures for February delivery gained $5.00 to $1,701.20 per troy ounce in early trade on Wednesday. The spot price of gold gained $2.70 to $1,700.00 per troy ounce. Silver also gained at $0.177 to $32.98 per troy ounce.

Overnight, Asian stocks rallied on news that Chinese government officials are seeking to bolster the economy with more construction projects. The news translated over to Europe, fresh from an agreement on Greece’s debt, which brought the euro to six-week highs against the dollar and European stocks higher.

In the U.S., the market place continues a focus on the U.S. fiscal cliff automatic tax hikes and spending cuts set to take effect in January. The rhetoric in Washington continues unabated though markets are paying less attention and seeking either to anticipate a last minute deal or sit out the market in wait for more definitive language regarding policy. Overall, per an analysis with Forbes, the situation has been a bearish drag on many markets, including the raw commodities and stock markets.

Investors and analysts are looking for more concrete data. The U.S. non-farm payroll data will be released this Friday and next week the Federal Reserve will conduct its last Federal Open Markets Committee meeting of the year on December 10th and 11th. The Operation Twist Program is again set to end and FOMC members will decide whether to extend the bond-buying program. While a push to QE4, as some investors believe will be the focus of next week’s meeting, may be jumping the gun on the heels of QE3, just announced in mid-September, an extension of the Operation Twist program or a restructuring of the program may be an important influence on markets.

Many analysts see the gold and silver markets remaining range-bound through the end of the year absent a major market influence as gold and silver have already moved into a sideways pattern, albeit choppy.

Meanwhile, sales at the U.S. Mint show a continued demand for American gold and silver coin bullion. Monday’s sales figures for American Eagle Silver coins registered 700,000 ounces over all of last week’s 500,000 ounces. Year-to-date, the Mint has moved 32,807,500 ounces. $50 American Eagle Gold Coins have sold 561,00 ounces year-to-date with 7,000 ounce moving Monday over 68,000 ounces sold last week.

]]>http://www.gold-bullion.org/bullion/Gold-Firm-on-Corrective-Bounce-Bargain-Hunting/#13547422024090http://www.gold-bullion.org/bullion/US-Mint-Made-Gold-Discs-for-Oil-Payments-to-Saudi-Arabia/
Tue, 04 Dec 2012 10:36:10 -0800December 4, 2012 - One of the more interesting products to reach the numismatic market in recent times, Gold Discs produced by the U.S. Mint for Aramco oil payments to Saudi Arabia following World War II will be available for the first time in twenty years.

In Saudi culture and history, gold coins are an important part of the monetary system. For many years, paper money was unacceptable in Saudi Arabia. The Saudi Arabian Monetary Agency was formed in 1952 and immediately issued the Saudi sovereign, a cold coin equivalent in weight and value to the British sovereign, selling today for approximately $124.00.

]]>December 4, 2012 - One of the more interesting products to reach the numismatic market in recent times, Gold Discs produced by the U.S. Mint for Aramco oil payments to Saudi Arabia following World War II will be available for the first time in twenty years.

In Saudi culture and history, gold coins are an important part of the monetary system. For many years, paper money was unacceptable in Saudi Arabia. The Saudi Arabian Monetary Agency was formed in 1952 and immediately issued the Saudi sovereign, a cold coin equivalent in weight and value to the British sovereign, selling today for approximately $124.00.

To many collectors, however, the most interesting Saudi gold coins are the Gold Discs, as they are known. The Gold Discs were struck at the Philadelphia Mint in the 1940’s for Aramco, bearing the American Eagle on one side with the legend U.S. Mint, Philadelphia. On the reverse, three lines of text describe the fineness and weight. These issues look like coins and were used as coins, but in a strict technical sense they are not coins.

Aramco was required to pay royalties and other payments in gold to the Saudi government and could not obtain the gold at the monetary price fixed by the United States. The U.S. government began to strike these Discs, bullion in a coin form, in order to make these payments. In 1945, the Mint produced 91,210 large discs worth $20 and in 1947 it produced 121,364 smaller discs worth $5, according to The Numismatist, which broke the story in 1957.

The discs are considered desirable and interesting additions to coin and art collections as they have been made more rare following many of the discs being melted down for bullion or redeemed for the Saudi Kingdom’s gold sovereigns.

Typically, most interesting products with a limited strike are considered rare and desirable in the world of coin collecting, though the Gold Discs are possibly more so because of their status as a recognized strike of the U.S. Mint without being an official gold coin.

The bullion coins weigh 493.1 grains, slightly more than a troy ounce, and were minted in 91.66 percent gold and 8.33 percent copper.

]]>http://www.gold-bullion.org/bullion/US-Mint-Made-Gold-Discs-for-Oil-Payments-to-Saudi-Arabia/#13546461704088http://www.gold-bullion.org/bullion/Gold-Set-for-Modest-Monthly-Gain,-Increased-Bullion-Buying/
Fri, 30 Nov 2012 10:36:59 -0800November 30, 2012 - The gold market steadied on Friday, ready to post a modest gain for the month of November in choppy trading conditions as the market responded in line with stocks and other risk assets to the latest negotiations over the U.S. fiscal cliff crisis.

The spot price of gold was marginally softer at $1,723.91 per troy ounce ready for a 1.6 percent weekly drop and a modest monthly gain around 0.2 percent. U.S. gold futures traded down 0.19 percent to $1,724.00 per troy ounce.

The U.S. dollar hit session highs in strong trade against the euro following data indicated U.S. personal income and consumer spending came in below expectations last month, which hurt risk appetite.

]]>November 30, 2012 - The gold market steadied on Friday, ready to post a modest gain for the month of November in choppy trading conditions as the market responded in line with stocks and other risk assets to the latest negotiations over the U.S. fiscal cliff crisis.

The spot price of gold was marginally softer at $1,723.91 per troy ounce ready for a 1.6 percent weekly drop and a modest monthly gain around 0.2 percent. U.S. gold futures traded down 0.19 percent to $1,724.00 per troy ounce.

The U.S. dollar hit session highs in strong trade against the euro following data indicated U.S. personal income and consumer spending came in below expectations last month, which hurt risk appetite.

Despite the strong dollar, which generally does not benefit the gold market as it makes gold more expensive for holders of other currencies, demand for gold remained strong with multi-year record sales at the U.S. Mint and the metal is set for a modest 0.2 percent gain in markets on the month.

Peter Fertig, consultant with Quantitative Commodity Research said the U.S. economic data came in a little worse than expected, which is weighing on risky assets, leading to a slight decline in gold.

Bullion recovered from a 1-1/2 week low of $1,705.64 per troy ounce hit on Wednesday during a technically-driven selloff following a significant drop in equities during the prior session. The main driver for the recovery is attributed to continued budget disagreements out of Washington as the U.S. fiscal cliff fast approaches.

Uncertainty over the fiscal cliff is regarded as beneficial to the gold market because the uncertainty it generates contributes to safe-haven asset demand and a move into gold. Negotiations on Friday showed less progress and more division than the rhetoric from a week ago as the President and Democrats in Congress seek to consolidate their winnings from the recent elections.

Meanwhile, another 11,000 ounces of American Eagle Gold coins sold at the U.S. Mint on Thursday, bringing November sales totals to 131,000 ounces, the highest level for a monthly total since January 2011 when sales reached 133,500 ounces. Physical buying on dips exhibits a decoupling of investors demand from current market dynamics, to some extent.

]]>http://www.gold-bullion.org/bullion/Gold-Set-for-Modest-Monthly-Gain,-Increased-Bullion-Buying/#13543006194087http://www.gold-bullion.org/bullion/The-Royal-Canadian-Mints-Lost-Gold/
Wed, 28 Nov 2012 10:23:44 -0800November 28, 2012 - In 2009, the Royal Canadian Mint claimed it had lost $15 million worth of gold bullion beginning in 2005. When the loss was made public, different accounts were put forward as the reason for the loss. Eventually, public outcry became so pronounced, the Royal Canadian Mint, one of the world’s most renowned Mints, launched an official investigation by the Royal Canadian Mounted Police.

Eventually, the loss of $15 million worth of gold bullion was blamed on a series of miscalculations and blunders in the Royal Canadian Mint’s gold refinery dating back to 2005, causing 17,500 troy ounces of gold to go missing from the Mint’s Sussex Drive inventory count, according to 12-page report released by the Mint.

By 2009, the value of the missing gold had reached $20 million.

The report said more than $3 million in government gold was unwittingly sold off at a fraction of its value as refinery slag, with another $8 million being miscounted and never leaving the Mint. The Mint admitted however, that 3,500 ounces unwittingly sold to U.S. refiners would never be recovered.

The controversy occurred in a very strange time, with the U.S. Mint suspending and curtailing U.S. Gold Eagle production due to widespread reports of physical stocks of gold bullion being very tight. The Mint announced a cancellation of the planned collectible versions of the 2009 American Gold Eagle and the full range of 2009 Proof Gold Eagles. The Mint also canceled collector versions of the 2009 Silver Eagle Coin in the same announcement.

One of the stranger stories regarding the gold bullion supply in recent times, the Royal Canadian Mint has repaired its reputation through a series of internal controls and anti-counterfeiting measures. The public outcry over a perceived lax security and accounting measures has prompted the Mint to adopt a laser engraving procedure for its gold coinage, the first of its kind in the world.

One ounce Gold Maple Leafs are now embossed with an engraved maple leaf containing the last two digits of the Mint date needing magnification to be seen. The laser engraved date will change with each year of coinage, making the procedure extremely difficult for counterfeiters to replicate.

]]>November 28, 2012 - In 2009, the Royal Canadian Mint claimed it had lost $15 million worth of gold bullion beginning in 2005. When the loss was made public, different accounts were put forward as the reason for the loss. Eventually, public outcry became so pronounced, the Royal Canadian Mint, one of the world’s most renowned Mints, launched an official investigation by the Royal Canadian Mounted Police.

Eventually, the loss of $15 million worth of gold bullion was blamed on a series of miscalculations and blunders in the Royal Canadian Mint’s gold refinery dating back to 2005, causing 17,500 troy ounces of gold to go missing from the Mint’s Sussex Drive inventory count, according to 12-page report released by the Mint.

By 2009, the value of the missing gold had reached $20 million.

The report said more than $3 million in government gold was unwittingly sold off at a fraction of its value as refinery slag, with another $8 million being miscounted and never leaving the Mint. The Mint admitted however, that 3,500 ounces unwittingly sold to U.S. refiners would never be recovered.

The controversy occurred in a very strange time, with the U.S. Mint suspending and curtailing U.S. Gold Eagle production due to widespread reports of physical stocks of gold bullion being very tight. The Mint announced a cancellation of the planned collectible versions of the 2009 American Gold Eagle and the full range of 2009 Proof Gold Eagles. The Mint also canceled collector versions of the 2009 Silver Eagle Coin in the same announcement.

One of the stranger stories regarding the gold bullion supply in recent times, the Royal Canadian Mint has repaired its reputation through a series of internal controls and anti-counterfeiting measures. The public outcry over a perceived lax security and accounting measures has prompted the Mint to adopt a laser engraving procedure for its gold coinage, the first of its kind in the world.

One ounce Gold Maple Leafs are now embossed with an engraved maple leaf containing the last two digits of the Mint date needing magnification to be seen. The laser engraved date will change with each year of coinage, making the procedure extremely difficult for counterfeiters to replicate.

]]>http://www.gold-bullion.org/bullion/The-Royal-Canadian-Mints-Lost-Gold/#13541270244084http://www.gold-bullion.org/bullion/Fed-Speakers-Greece-Dominate-Week/
Mon, 26 Nov 2012 11:08:21 -0800November 26, 2012 - The spot price of gold moved up $3.80 per troy once to $1,734.00. U.S. gold futures for February delivery traded down $1.00 to $1,752.80 per troy ounce. Silver futures for December delivery gained $0.029 to $34.235 per troy ounce.

The current corrective pullback in the gold market is widely interpreted as a modest sell-off following Friday’s solid gains. The pullback is small compared to the gains, but looking ahead there are several factors that could influence the gold market this coming week.

At the top of the list for U.S. traders and investors, as they return from the Thanksgiving holiday, is the U.S. fiscal cliff series of tax hikes and spending cuts set to take effect in January. Negotiations between Congress and President Obama, as well as speakers from the Federal Reserve, will be watched closely this week for keys into the direction of markets.

On Monday, the latest meeting for Eurozone finance ministers and the International Monetary Fund is occurring in Brussels with the goal of unfreezing the latest tranche of bailout money for Greece. Negotiations are intended to produce an agreement over whether some of the previous bailout money given to Greece will be written off.

A Kitco News gold survey detailed 14 of 19 respondents seeing gold prices moving up this week, with only one seeing prices down and four sideways or unchanged.

George Gero, vice president and precious-metals strategist with RBC Capital Markets Global Futures, said he expected gold to be up last week and he expects it to be up this week as well as they kick the can down the road in the Eurozone.

An agreement on the Greek debt, should the meeting produce one, is expected to bolster the euro against the dollar, helping the gold market, accord to Gero and Daniel Pavilonis, a senior commodities broker with RJO Futures.

Pavilonis said he believes they’ll get a package done and that situation will get pushed out of the way, which will put a magnifying glass on the fiscal cliff.

Talks between the Republicans and Democrats will be featured in news and watched closely by U.S. traders and investors as Congress returns from the Thanksgiving holiday this week.

]]>November 26, 2012 - The spot price of gold moved up $3.80 per troy once to $1,734.00. U.S. gold futures for February delivery traded down $1.00 to $1,752.80 per troy ounce. Silver futures for December delivery gained $0.029 to $34.235 per troy ounce.

The current corrective pullback in the gold market is widely interpreted as a modest sell-off following Friday’s solid gains. The pullback is small compared to the gains, but looking ahead there are several factors that could influence the gold market this coming week.

At the top of the list for U.S. traders and investors, as they return from the Thanksgiving holiday, is the U.S. fiscal cliff series of tax hikes and spending cuts set to take effect in January. Negotiations between Congress and President Obama, as well as speakers from the Federal Reserve, will be watched closely this week for keys into the direction of markets.

On Monday, the latest meeting for Eurozone finance ministers and the International Monetary Fund is occurring in Brussels with the goal of unfreezing the latest tranche of bailout money for Greece. Negotiations are intended to produce an agreement over whether some of the previous bailout money given to Greece will be written off.

A Kitco News gold survey detailed 14 of 19 respondents seeing gold prices moving up this week, with only one seeing prices down and four sideways or unchanged.

George Gero, vice president and precious-metals strategist with RBC Capital Markets Global Futures, said he expected gold to be up last week and he expects it to be up this week as well as they kick the can down the road in the Eurozone.

An agreement on the Greek debt, should the meeting produce one, is expected to bolster the euro against the dollar, helping the gold market, accord to Gero and Daniel Pavilonis, a senior commodities broker with RJO Futures.

Pavilonis said he believes they’ll get a package done and that situation will get pushed out of the way, which will put a magnifying glass on the fiscal cliff.

Talks between the Republicans and Democrats will be featured in news and watched closely by U.S. traders and investors as Congress returns from the Thanksgiving holiday this week.

]]>http://www.gold-bullion.org/bullion/Fed-Speakers-Greece-Dominate-Week/#13539569014082http://www.gold-bullion.org/bullion/Gold-Firmer-Dollar-Weaker/
Fri, 23 Nov 2012 09:05:48 -0800November 23, 2012 - Trading is subdued on Friday morning following the U.S. Thanksgiving holiday as a weaker U.S. dollar index and bullish near-term technical fundamentals bring a quiet confidence to the gold market.

U.S. gold futures for December delivery gained $5.80 to $1,734.00 per troy ounce as the spot price of gold quoted up $3.80 to $1,734.00 per troy ounce as well. U.S. silver futures for December delivery gained $0.085 to $33.435 per troy ounce, outperforming gold with a 3.5 percent rise on the week in line.

Stronger than expected Ifo business confidence reading reported out of Germany on Friday brought about an optimistic environment in which the euro is at a three-week high against the dollar. A key meeting of Eurozone leaders on Monday, at which time it is widely expected some headway will be made on Greece’s debt, will decide when and how to disburse fresh bailout funds to the cash-starved Mediterranean country. The finance minister of Finland said on Friday she expects there to be an agreement on Monday.

As the U.S. dollar index drops, demand for gold is bolstering the spot price. Typically, a weaker dollar is bullish for gold because it makes the asset less expensive for buyers holding foreign currency.

Technical analysis at Forbes suggests gold bulls have the overall near-term and longer-term technical advantage. Following the technical consolidation and sideways chart action of the past couple weeks, gold bulls have an upside price breakout objective above the resistance at the November high of $1,739.40 per troy ounce. There is support on the downside at $1,727.60 and $1,720.00.

December silver futures bulls also have the overall near-term technical advantage with prices hitting a fresh six-week high overnight and the price of silver outperforming gold ready to realize a 3.5 percent gain on the week. A close above technical resistance at $34.00 per troy ounce is the next breakout point for silver bulls with resistance at $33.50 and $33.75. There is support at the overnight low of $33.235 and $33.00.

While the optimism in Europe will not lend safe haven investment demand to the gold market, there is more than enough concern over the U.S. fiscal cliff scenario to bring safe haven demand to the market. The weaker dollar against the euro currency is certainly bringing investor demand as the price break is a dip investors have been waiting for since the strong dollar began with the initiation of QE3 in mid-September.

]]>November 23, 2012 - Trading is subdued on Friday morning following the U.S. Thanksgiving holiday as a weaker U.S. dollar index and bullish near-term technical fundamentals bring a quiet confidence to the gold market.

U.S. gold futures for December delivery gained $5.80 to $1,734.00 per troy ounce as the spot price of gold quoted up $3.80 to $1,734.00 per troy ounce as well. U.S. silver futures for December delivery gained $0.085 to $33.435 per troy ounce, outperforming gold with a 3.5 percent rise on the week in line.

Stronger than expected Ifo business confidence reading reported out of Germany on Friday brought about an optimistic environment in which the euro is at a three-week high against the dollar. A key meeting of Eurozone leaders on Monday, at which time it is widely expected some headway will be made on Greece’s debt, will decide when and how to disburse fresh bailout funds to the cash-starved Mediterranean country. The finance minister of Finland said on Friday she expects there to be an agreement on Monday.

As the U.S. dollar index drops, demand for gold is bolstering the spot price. Typically, a weaker dollar is bullish for gold because it makes the asset less expensive for buyers holding foreign currency.

Technical analysis at Forbes suggests gold bulls have the overall near-term and longer-term technical advantage. Following the technical consolidation and sideways chart action of the past couple weeks, gold bulls have an upside price breakout objective above the resistance at the November high of $1,739.40 per troy ounce. There is support on the downside at $1,727.60 and $1,720.00.

December silver futures bulls also have the overall near-term technical advantage with prices hitting a fresh six-week high overnight and the price of silver outperforming gold ready to realize a 3.5 percent gain on the week. A close above technical resistance at $34.00 per troy ounce is the next breakout point for silver bulls with resistance at $33.50 and $33.75. There is support at the overnight low of $33.235 and $33.00.

While the optimism in Europe will not lend safe haven investment demand to the gold market, there is more than enough concern over the U.S. fiscal cliff scenario to bring safe haven demand to the market. The weaker dollar against the euro currency is certainly bringing investor demand as the price break is a dip investors have been waiting for since the strong dollar began with the initiation of QE3 in mid-September.

]]>http://www.gold-bullion.org/bullion/Gold-Firmer-Dollar-Weaker/#13536903484081http://www.gold-bullion.org/bullion/Brazil-Boosts-Gold-Reserves-to-11-Year-High/
Wed, 21 Nov 2012 10:31:04 -0800November 21, 2012 - Brazil has raised its gold reserves for a second month during October, brining reserves to the highest level in more than 11 years as central banks around the world, including Kazakhstan and Russia, are boosting holdings by more than 40 metric tons.

Brazil’s holdings expanded 17.2 tons last month to 52.5 tons, the highest levels since January 2001 according to data from the International Monetary Fund. Brazil’s 1.7 ton purchase in September was the first since December 2008. Meanwhile, central bank holdings around the world continue to increase with Russia adding 0.4 tons and Turkey gaining 17.5 tons. Germany, which is the second-largest holder after the U.S., cut its gold holdings by 4.2 tons, the first reduction in Germany’s gold reserves since June.

Gold is headed for its 12th straight annual gain and central banks are expanding reserves. Data compiled by Bloomberg also shows investors hold a record amount in bullion-backed exchange-traded products. Nations bought 373.9 tons of gold in the first nine months of the year and full-year additions will probably be between 450 and 500 tons, according to the London-based World Gold Council.

Edel Tully, an analyst at UBS AG in London, write this is a chunky purchase by a central bank and the gold market will likely sit up and pay attention.

The gold market continued to fluctuate on news in early trading on Wednesday. The lenders to Greece failed to reach an agreement for emergency funds, which hurt the euro and strengthened the dollar, harming the price of gold. Instability in the Middle East coupled with concerns over the continuing U.S. fiscal crisis, however, bolstered the gold market.

The spot price of gold slipped 0.1 percent to $1,725.78 per troy ounce, though U.S. gold for December delivery gained 0.15 percent to $1,726.10 per troy ounce. Silver contracts for December delivery traded up $0.09 to $33.02 per troy ounce.

The majority of central banks around the world turned net-buyers of gold in 2009. Since that time, the gold market has been making a lot of headway and demand from central banks if oft cited as an underlying fundamental. In the third quarter of 2011, central banks bought gold at 40-year highs, indicated we have reached historic proportions commensurate with the U.S. leaving the gold standard in 1971.

]]>November 21, 2012 - Brazil has raised its gold reserves for a second month during October, brining reserves to the highest level in more than 11 years as central banks around the world, including Kazakhstan and Russia, are boosting holdings by more than 40 metric tons.

Brazil’s holdings expanded 17.2 tons last month to 52.5 tons, the highest levels since January 2001 according to data from the International Monetary Fund. Brazil’s 1.7 ton purchase in September was the first since December 2008. Meanwhile, central bank holdings around the world continue to increase with Russia adding 0.4 tons and Turkey gaining 17.5 tons. Germany, which is the second-largest holder after the U.S., cut its gold holdings by 4.2 tons, the first reduction in Germany’s gold reserves since June.

Gold is headed for its 12th straight annual gain and central banks are expanding reserves. Data compiled by Bloomberg also shows investors hold a record amount in bullion-backed exchange-traded products. Nations bought 373.9 tons of gold in the first nine months of the year and full-year additions will probably be between 450 and 500 tons, according to the London-based World Gold Council.

Edel Tully, an analyst at UBS AG in London, write this is a chunky purchase by a central bank and the gold market will likely sit up and pay attention.

The gold market continued to fluctuate on news in early trading on Wednesday. The lenders to Greece failed to reach an agreement for emergency funds, which hurt the euro and strengthened the dollar, harming the price of gold. Instability in the Middle East coupled with concerns over the continuing U.S. fiscal crisis, however, bolstered the gold market.

The spot price of gold slipped 0.1 percent to $1,725.78 per troy ounce, though U.S. gold for December delivery gained 0.15 percent to $1,726.10 per troy ounce. Silver contracts for December delivery traded up $0.09 to $33.02 per troy ounce.

The majority of central banks around the world turned net-buyers of gold in 2009. Since that time, the gold market has been making a lot of headway and demand from central banks if oft cited as an underlying fundamental. In the third quarter of 2011, central banks bought gold at 40-year highs, indicated we have reached historic proportions commensurate with the U.S. leaving the gold standard in 1971.

]]>http://www.gold-bullion.org/bullion/Brazil-Boosts-Gold-Reserves-to-11-Year-High/#13535226644079http://www.gold-bullion.org/bullion/Gold-Starts-Week-Higher-With-Fiscal-Cliff-in-Focus/
Mon, 19 Nov 2012 09:06:33 -0800November 19, 2012 - Spot prices for gold bullion continued to hover near $1,725 per troy ounce during morning trading in London, with the spot price of gold gaining 0.61 percent to $1,723.90 per troy ounce and U.S. gold futures for December delivery up 0.5 percent to $1,723.90 per troy ounce.

Silver bullion also rallied from last week above $32.70 per troy ounce, regaining ground lost on Friday.

U.S. Treasury Secretary Timothy Geithner said Friday that Congressional leaders and the White House should be able to agree on a deal to avoid the fiscal cliff within several weeks. The indication that a deal can be reached before the series of tax increases and budget cuts take effect in January when the new Congress convenes reassured markets in early trading.

The most recent agreements, reached last week, indicated reforms need to be made to the U.S. tax code and to so-called entitlement programs.

Ole Hansen, head of commodity strategy at Saxo Bank, said if the parties reach agreement that would remove uncertainty and gold’s safe haven status but the low interest rate environment is not going away.

The Federal Reserve has pledge to maintain low, near-zero interest rates until mid-2015. Low interest rate policy is attributed as a partial driver for gold’s record-breaking performance of the past five years.

The U.S. election, prior to the current fiscal cliff debate, brought the speculative net long position of Comex gold futures and options traders higher in the week ended last Tuesday after falling for the previous four weeks, according to weekly data published Friday by the Commodity Futures Trading Commission.

Marc Ground, commodities strategist at Standard Bank, said the participants were emboldened by a belief the Obama win would ensure the continued accommodative stance on monetary policy by the U.S. Federal Reserve. It added strong physical demand also helped sustain the upward momentum.

The gold bullion held by exchange-traded funds tracked by Reuters rose to a new record last Friday just under 2,346 tonnes. Holdings in the world’s largest gold ETF also gained to a new all-time high, at 1,342.6 tonnes to end the week.

Markets will continue to closely monitor news out of Washington for indications on the U.S. fiscal cliff and an agreement by U.S. lawmakers on an equitable solution.

]]>November 19, 2012 - Spot prices for gold bullion continued to hover near $1,725 per troy ounce during morning trading in London, with the spot price of gold gaining 0.61 percent to $1,723.90 per troy ounce and U.S. gold futures for December delivery up 0.5 percent to $1,723.90 per troy ounce.

Silver bullion also rallied from last week above $32.70 per troy ounce, regaining ground lost on Friday.

U.S. Treasury Secretary Timothy Geithner said Friday that Congressional leaders and the White House should be able to agree on a deal to avoid the fiscal cliff within several weeks. The indication that a deal can be reached before the series of tax increases and budget cuts take effect in January when the new Congress convenes reassured markets in early trading.

The most recent agreements, reached last week, indicated reforms need to be made to the U.S. tax code and to so-called entitlement programs.

Ole Hansen, head of commodity strategy at Saxo Bank, said if the parties reach agreement that would remove uncertainty and gold’s safe haven status but the low interest rate environment is not going away.

The Federal Reserve has pledge to maintain low, near-zero interest rates until mid-2015. Low interest rate policy is attributed as a partial driver for gold’s record-breaking performance of the past five years.

The U.S. election, prior to the current fiscal cliff debate, brought the speculative net long position of Comex gold futures and options traders higher in the week ended last Tuesday after falling for the previous four weeks, according to weekly data published Friday by the Commodity Futures Trading Commission.

Marc Ground, commodities strategist at Standard Bank, said the participants were emboldened by a belief the Obama win would ensure the continued accommodative stance on monetary policy by the U.S. Federal Reserve. It added strong physical demand also helped sustain the upward momentum.

The gold bullion held by exchange-traded funds tracked by Reuters rose to a new record last Friday just under 2,346 tonnes. Holdings in the world’s largest gold ETF also gained to a new all-time high, at 1,342.6 tonnes to end the week.

Markets will continue to closely monitor news out of Washington for indications on the U.S. fiscal cliff and an agreement by U.S. lawmakers on an equitable solution.

]]>http://www.gold-bullion.org/bullion/Gold-Starts-Week-Higher-With-Fiscal-Cliff-in-Focus/#13533447934077http://www.gold-bullion.org/bullion/Q3-Gold-Demand-Fell-as-China’s-Economy-Slowed/
Thu, 15 Nov 2012 08:15:54 -0800November 15, 2012 - In the three months up to September, world gold demand fell by 11 percent after record levels of demand in the same period the year prior. Chinese gold demand dropped precipitously with news that its economy was slowing, according to the World Gold Council, which just released the information.

Strong Indian demand stemmed a larger fall for the precious metal, according to the World Gold Council, but demand has also been short in the largest gold market on the planet traditionally. Government regulations and tax hikes coupled with a weak rupee and strong dollar have contributed to the fall off in demand in the Indian market, though by the start of the festival season demand had picked up. In the last quarter Indian demand gained 9 percent to 223.1 tonnes, reversing a trend that had lasted three quarters.

From the period of July to September, gold consumption dropped 8 percent to 176.8 tonnes, read the World Gold Council’s quarterly demand trends report released on Thursday. Both jewelry and investment demand from China suffered a loss.

China’s economy slowed for the seventh straight quarter in the July to September period, bringing about a 12 percent drop in Chinese bar and coin investment to 53 tonnes as jewelry dropped 5 percent to 123.8 tonnes.

The World Gold Council’s managing director of investment research Marcus Grubb said the fall in Chinese demand coincides with weaker economic numbers in China in Q3. He continued by saying there is some evidence that the economic situation is stabilizing in China and recovery is starting. He did say it’s possible that the stimulus measures have worked and the economy has bottomed out.

If that is the case, there will not be a repeat of the Chinese weakness in the fourth quarter.

Grubb reported that we’re finally starting to see the Indian market come back with the anecdotal evidence good looking forward to fourth quarter demand. With premiums high in the Mumbai market, Grubb said, and the strength of the rupee has meant you have seen rupee prices moderate somewhat.

India’s consumer gold demand, according to the World Gold Council’s report, remains down 24 percent in the first three-quarters of the year and is not likely at this stage to record a net gain for 2012 as a whole.

]]>November 15, 2012 - In the three months up to September, world gold demand fell by 11 percent after record levels of demand in the same period the year prior. Chinese gold demand dropped precipitously with news that its economy was slowing, according to the World Gold Council, which just released the information.

Strong Indian demand stemmed a larger fall for the precious metal, according to the World Gold Council, but demand has also been short in the largest gold market on the planet traditionally. Government regulations and tax hikes coupled with a weak rupee and strong dollar have contributed to the fall off in demand in the Indian market, though by the start of the festival season demand had picked up. In the last quarter Indian demand gained 9 percent to 223.1 tonnes, reversing a trend that had lasted three quarters.

From the period of July to September, gold consumption dropped 8 percent to 176.8 tonnes, read the World Gold Council’s quarterly demand trends report released on Thursday. Both jewelry and investment demand from China suffered a loss.

China’s economy slowed for the seventh straight quarter in the July to September period, bringing about a 12 percent drop in Chinese bar and coin investment to 53 tonnes as jewelry dropped 5 percent to 123.8 tonnes.

The World Gold Council’s managing director of investment research Marcus Grubb said the fall in Chinese demand coincides with weaker economic numbers in China in Q3. He continued by saying there is some evidence that the economic situation is stabilizing in China and recovery is starting. He did say it’s possible that the stimulus measures have worked and the economy has bottomed out.

If that is the case, there will not be a repeat of the Chinese weakness in the fourth quarter.

Grubb reported that we’re finally starting to see the Indian market come back with the anecdotal evidence good looking forward to fourth quarter demand. With premiums high in the Mumbai market, Grubb said, and the strength of the rupee has meant you have seen rupee prices moderate somewhat.

India’s consumer gold demand, according to the World Gold Council’s report, remains down 24 percent in the first three-quarters of the year and is not likely at this stage to record a net gain for 2012 as a whole.

]]>http://www.gold-bullion.org/bullion/Q3-Gold-Demand-Fell-as-China’s-Economy-Slowed/#13529961544075http://www.gold-bullion.org/bullion/Gold-Consolidating-Obama-Will-Need-to-Tax-Wealthy/
Wed, 14 Nov 2012 10:20:11 -0800November 14, 2012 - Gold prices continued a relative easing after last week’s five straight sessions of gains that brought the gold price to three-week highs. The spot price of gold drifted 0.1 percent to $1,722.91 per troy ounce as U.S. gold futures for December delivery dipped 0.1 percent to $1,722.80 per troy ounce.

Scotia bank released a technical analysis saying gold is consolidating last week’s strong up leg from $1,673 to $1,739.

Silver prices also drifted 0.1 percent to $32.28 per troy ounce.

As forty unions in twenty-three countries across Europe prepare to participate in anti-austerity strikes, the U.S. dollar has finally fallen slightly against the euro after hitting a two-month high, effectively cutting off overseas demand in a strong dollar environment. As the strikes take place, however, it is entirely possible the euro strength will not last.

Meanwhile, the U.S. fiscal cliff is dominating market sentiment on the broader scale with U.S. president Barack Obama set to take questions today regarding his plans for tackling the budgetary crisis and political obstacles. At the start of January, with a new Congress, a series of tax hikes and budget cuts are set to take effect, called the fiscal cliff.

Deutsche Bank analyst Daniel Brebner said if we have brinksmanship and we don’t see a resolution that could put downward pressure on gold.

Brebner’s colleague Raymond Key, Deutsche Bank’s global head of precious metals trading, said from the London Bullion Market Association’s annual conference, that gold prices will take out $2,000 per troy ounce, reasoning gold will go higher on the view that the Federal Reserve will continue to print money.

The threat of the U.S. fiscal cliff as well as less-than-promising news out of Europe, which has recently reported economic indicators pointing to recession, has helped fuel bullion sales at the U.S. Mint in the meantime. American Eagle Gold Coins have made stronger numbers so far this month that last month’s reaction to the third round of quantitative easing. American Eagle Silver Coins have sold in excess of 3.1 million ounces, the second time in the coin’s 26-year history that the milestone has been achieved.

]]>November 14, 2012 - Gold prices continued a relative easing after last week’s five straight sessions of gains that brought the gold price to three-week highs. The spot price of gold drifted 0.1 percent to $1,722.91 per troy ounce as U.S. gold futures for December delivery dipped 0.1 percent to $1,722.80 per troy ounce.

Scotia bank released a technical analysis saying gold is consolidating last week’s strong up leg from $1,673 to $1,739.

Silver prices also drifted 0.1 percent to $32.28 per troy ounce.

As forty unions in twenty-three countries across Europe prepare to participate in anti-austerity strikes, the U.S. dollar has finally fallen slightly against the euro after hitting a two-month high, effectively cutting off overseas demand in a strong dollar environment. As the strikes take place, however, it is entirely possible the euro strength will not last.

Meanwhile, the U.S. fiscal cliff is dominating market sentiment on the broader scale with U.S. president Barack Obama set to take questions today regarding his plans for tackling the budgetary crisis and political obstacles. At the start of January, with a new Congress, a series of tax hikes and budget cuts are set to take effect, called the fiscal cliff.

Deutsche Bank analyst Daniel Brebner said if we have brinksmanship and we don’t see a resolution that could put downward pressure on gold.

Brebner’s colleague Raymond Key, Deutsche Bank’s global head of precious metals trading, said from the London Bullion Market Association’s annual conference, that gold prices will take out $2,000 per troy ounce, reasoning gold will go higher on the view that the Federal Reserve will continue to print money.

The threat of the U.S. fiscal cliff as well as less-than-promising news out of Europe, which has recently reported economic indicators pointing to recession, has helped fuel bullion sales at the U.S. Mint in the meantime. American Eagle Gold Coins have made stronger numbers so far this month that last month’s reaction to the third round of quantitative easing. American Eagle Silver Coins have sold in excess of 3.1 million ounces, the second time in the coin’s 26-year history that the milestone has been achieved.

]]>http://www.gold-bullion.org/bullion/Gold-Consolidating-Obama-Will-Need-to-Tax-Wealthy/#13529172114074http://www.gold-bullion.org/bullion/China-Behind-US-in-Gold-Holdings-Has-a-Long-Way-to-Go/
Mon, 12 Nov 2012 09:22:22 -0800Nomvember 12, 2012 - Gold gained 0.32 percent in early Monday trading to $1,736.50 per troy ounce, continuing to hold at a three-week high near $1,738 reached on Friday and significantly higher than the two-month low around $1,672 from last week. U.S. gold futures for December delivery gained 0.34 percent to $1,736.70 per troy ounce.

The president of the Shanghai Gold Exchange said at the London Bullion Market Association conference in Hong Kong that the bourse would launch an interbank market in early December that would start with spot contracts and eventually include forward contracts.

Attending the same conference, the general director of the People’s Bank of China, Xie Duo, said the central bank had not set a time-frame on issuing more gold import licenses to banks but was keep to further open up the market to the international community.

The holdings of the Chinese government have become a significant focus for the gold market as investors look for drivers on the side of investment demand and as analysts attempt to map their way out of the gold correction. Chinese government holdings are significantly low compared with developed Western countries. Additionally, the slowdown in the Chinese economy, which has been a focus of Western investor demand for some time, contributes to the gold market as well as broader financial markets.

Last week, the global head of metals at consultancy Thomson Reuters GFMS said he expected China’s gold demand to increase by 1 percent this year, bringing the tonnage to a record around 860 tonnes, which would catapult the country to overtaking India as the world’s biggest consumer of gold for the first time on a yearly basis.

Gold prices may hit $2,000 per troy ounce in 2013 as rising costs and production constraints hold supply in check, according to Barrick Gold Corp, the world’s biggest gold producer, which released a statement on Monday.

David Gornall, chairman of the London Bullion Market Association, said at the annual conference recently held in Hong Kong that China has been the world’s number one gold-mining country for the past five years. Gornall is also head of metals trading at Natixis SA. He added what is remarkable is the way that this growth has continued while many of the other important mining countries have struggled to maintain production.

]]>

Nomvember 12, 2012 - Gold gained 0.32 percent in early Monday trading to $1,736.50 per troy ounce, continuing to hold at a three-week high near $1,738 reached on Friday and significantly higher than the two-month low around $1,672 from last week. U.S. gold futures for December delivery gained 0.34 percent to $1,736.70 per troy ounce.

The president of the Shanghai Gold Exchange said at the London Bullion Market Association conference in Hong Kong that the bourse would launch an interbank market in early December that would start with spot contracts and eventually include forward contracts.

Attending the same conference, the general director of the People’s Bank of China, Xie Duo, said the central bank had not set a time-frame on issuing more gold import licenses to banks but was keep to further open up the market to the international community.

The holdings of the Chinese government have become a significant focus for the gold market as investors look for drivers on the side of investment demand and as analysts attempt to map their way out of the gold correction. Chinese government holdings are significantly low compared with developed Western countries. Additionally, the slowdown in the Chinese economy, which has been a focus of Western investor demand for some time, contributes to the gold market as well as broader financial markets.

Last week, the global head of metals at consultancy Thomson Reuters GFMS said he expected China’s gold demand to increase by 1 percent this year, bringing the tonnage to a record around 860 tonnes, which would catapult the country to overtaking India as the world’s biggest consumer of gold for the first time on a yearly basis.

Gold prices may hit $2,000 per troy ounce in 2013 as rising costs and production constraints hold supply in check, according to Barrick Gold Corp, the world’s biggest gold producer, which released a statement on Monday.

David Gornall, chairman of the London Bullion Market Association, said at the annual conference recently held in Hong Kong that China has been the world’s number one gold-mining country for the past five years. Gornall is also head of metals trading at Natixis SA. He added what is remarkable is the way that this growth has continued while many of the other important mining countries have struggled to maintain production.

]]>http://www.gold-bullion.org/bullion/China-Behind-US-in-Gold-Holdings-Has-a-Long-Way-to-Go/#13527409424071http://www.gold-bullion.org/bullion/China-Behind-US-in-Gold-Holdings-Has-a-Long-Way-to-Go/
Mon, 12 Nov 2012 09:21:04 -0800Nomvember 12, 2012 - Gold gained 0.32 percent in early Monday trading to $1,736.50 per troy ounce, continuing to hold at a three-week high near $1,738 reached on Friday and significantly higher than the two-month low around $1,672 from last week. U.S. gold futures for December delivery gained 0.34 percent to $1,736.70 per troy ounce.

The president of the Shanghai Gold Exchange said at the London Bullion Market Association conference in Hong Kong that the bourse would launch an interbank market in early December that would start with spot contracts and eventually include forward contracts.

Attending the same conference, the general director of the People’s Bank of China, Xie Duo, said the central bank had not set a time-frame on issuing more gold import licenses to banks but was keep to further open up the market to the international community.

The holdings of the Chinese government have become a significant focus for the gold market as investors look for drivers on the side of investment demand and as analysts attempt to map their way out of the gold correction. Chinese government holdings are significantly low compared with developed Western countries. Additionally, the slowdown in the Chinese economy, which has been a focus of Western investor demand for some time, contributes to the gold market as well as broader financial markets.

Last week, the global head of metals at consultancy Thomson Reuters GFMS said he expected China’s gold demand to increase by 1 percent this year, bringing the tonnage to a record around 860 tonnes, which would catapult the country to overtaking India as the world’s biggest consumer of gold for the first time on a yearly basis.

Gold prices may hit $2,000 per troy ounce in 2013 as rising costs and production constraints hold supply in check, according to Barrick Gold Corp, the world’s biggest gold producer, which released a statement on Monday.

David Gornall, chairman of the London Bullion Market Association, said at the annual conference recently held in Hong Kong that China has been the world’s number one gold-mining country for the past five years. Gornall is also head of metals trading at Natixis SA. He added what is remarkable is the way that this growth has continued while many of the other important mining countries have struggled to maintain production.

]]>

Nomvember 12, 2012 - Gold gained 0.32 percent in early Monday trading to $1,736.50 per troy ounce, continuing to hold at a three-week high near $1,738 reached on Friday and significantly higher than the two-month low around $1,672 from last week. U.S. gold futures for December delivery gained 0.34 percent to $1,736.70 per troy ounce.

The president of the Shanghai Gold Exchange said at the London Bullion Market Association conference in Hong Kong that the bourse would launch an interbank market in early December that would start with spot contracts and eventually include forward contracts.

Attending the same conference, the general director of the People’s Bank of China, Xie Duo, said the central bank had not set a time-frame on issuing more gold import licenses to banks but was keep to further open up the market to the international community.

The holdings of the Chinese government have become a significant focus for the gold market as investors look for drivers on the side of investment demand and as analysts attempt to map their way out of the gold correction. Chinese government holdings are significantly low compared with developed Western countries. Additionally, the slowdown in the Chinese economy, which has been a focus of Western investor demand for some time, contributes to the gold market as well as broader financial markets.

Last week, the global head of metals at consultancy Thomson Reuters GFMS said he expected China’s gold demand to increase by 1 percent this year, bringing the tonnage to a record around 860 tonnes, which would catapult the country to overtaking India as the world’s biggest consumer of gold for the first time on a yearly basis.

Gold prices may hit $2,000 per troy ounce in 2013 as rising costs and production constraints hold supply in check, according to Barrick Gold Corp, the world’s biggest gold producer, which released a statement on Monday.

David Gornall, chairman of the London Bullion Market Association, said at the annual conference recently held in Hong Kong that China has been the world’s number one gold-mining country for the past five years. Gornall is also head of metals trading at Natixis SA. He added what is remarkable is the way that this growth has continued while many of the other important mining countries have struggled to maintain production.

]]>http://www.gold-bullion.org/bullion/China-Behind-US-in-Gold-Holdings-Has-a-Long-Way-to-Go/#13527408644070http://www.gold-bullion.org/bullion/Survey-Shows-Most-Traders-Bullish-on-Gold-Bullion/
Fri, 09 Nov 2012 10:33:06 -0800November 9, 2012 - Before a pullback in mid-morning trading, prices of wholesale gold bullion traded above $1,730 per troy ounce Friday in London. The price of gold hit a new two-week high as stocks fell and the dollar and U.S. Treasury bonds gained. Analysts suggested weak growth and monetary policy are likely to persist.

Silver bullion traded near $32.20 per troy ounce for most of the morning, up 4.3 percent for the week as oil and copper prices drifted.

Marc Ground, Commodities strategist with Standard Bank, said precious metals continue to push higher with the rest of the complex being led by gold.

He added that in spite of dollar strength, the market appears to continue to take comfort from Obama’s re-election and the implied support this gives to continued monetary accommodation from the Fed.

Going into the weekend, gold bullion looks set to record the first weekly gain in the market since the beginning of October, rising more than 3 percent since the week’s start.

A rumor circulating amongst New York traders places gold’s 1.7 percent jump on Tuesday at the desk of the Soros Fund, which is said to have made a purchase so large it instigated the price swing.

Concerns over the U.S. fiscal cliff, a deadlock of tax hikes and budget deficits set to take effect in early 2013 before a divided Congress, as well as renewed attention toward the EU debt crisis, is spurring a move toward safe-haven assets such as not seen in the previous months.

Greece approved additional austerity measures in the past week and major EU countries report contraction in industrial production as the Eurozone leaders prepare to meet yet again in the next week to discuss the debt crisis.

The re-election of Barack Obama has been a herald of ultra-loose monetary policy for the markets in the U.S. Obama’s re-election is the final word that the policies of the past four years will continue for another four. Political uncertainty over the possibility of a challenger taking the White House and ousting Federal Reserve Chairman Ben Bernanke is now priced out of the market with strong gains in gold and silver and record sales with the U.S. Mint.

]]>November 9, 2012 - Before a pullback in mid-morning trading, prices of wholesale gold bullion traded above $1,730 per troy ounce Friday in London. The price of gold hit a new two-week high as stocks fell and the dollar and U.S. Treasury bonds gained. Analysts suggested weak growth and monetary policy are likely to persist.

Silver bullion traded near $32.20 per troy ounce for most of the morning, up 4.3 percent for the week as oil and copper prices drifted.

Marc Ground, Commodities strategist with Standard Bank, said precious metals continue to push higher with the rest of the complex being led by gold.

He added that in spite of dollar strength, the market appears to continue to take comfort from Obama’s re-election and the implied support this gives to continued monetary accommodation from the Fed.

Going into the weekend, gold bullion looks set to record the first weekly gain in the market since the beginning of October, rising more than 3 percent since the week’s start.

A rumor circulating amongst New York traders places gold’s 1.7 percent jump on Tuesday at the desk of the Soros Fund, which is said to have made a purchase so large it instigated the price swing.

Concerns over the U.S. fiscal cliff, a deadlock of tax hikes and budget deficits set to take effect in early 2013 before a divided Congress, as well as renewed attention toward the EU debt crisis, is spurring a move toward safe-haven assets such as not seen in the previous months.

Greece approved additional austerity measures in the past week and major EU countries report contraction in industrial production as the Eurozone leaders prepare to meet yet again in the next week to discuss the debt crisis.

The re-election of Barack Obama has been a herald of ultra-loose monetary policy for the markets in the U.S. Obama’s re-election is the final word that the policies of the past four years will continue for another four. Political uncertainty over the possibility of a challenger taking the White House and ousting Federal Reserve Chairman Ben Bernanke is now priced out of the market with strong gains in gold and silver and record sales with the U.S. Mint.

]]>http://www.gold-bullion.org/bullion/Survey-Shows-Most-Traders-Bullish-on-Gold-Bullion/#13524859864069http://www.gold-bullion.org/bullion/An-Obama-Win-Signals-Loose-Monetary-Policy-as-Gold-Surges/
Wed, 07 Nov 2012 11:07:25 -0800November 7, 2012 - After a pre-emptive surge to the $1,730 per troy ounce level on Tuesday, a two-week high, gold dropped back to the $1,720 per troy ounce level on Wednesday morning in London.

A note from Commerzbank read that gold is making significant gains on the back of a weak U.S. dollar.

Prices for silver reached their highest levels in a week before dropping back below $32 per troy ounce.

Junya Tanase, chief currency strategist at JPMorgan Chase in Tokyo, said Obama’s re-election is likely to boost expectations of continued easing by the Fed. She added, JPMorgan Chase forecasts gold would end the year at $1,780 per troy ounce and peak late in 2013 at around $1,890 per troy ounce. She sees upside risks to these forecast highs in the event of additional U.S. policy easing or signs of inflation following the liquidity injections of the past four years.

Michiyoshi Kato, senior vice president of foreign-currency sales at Mizuho Corporate Bank in Tokyo, said monetary policy will remain loose under Obama and the dollar will be sold. Though the dollar-selling may not last long as the U.S. faces the fiscal cliff, the U.S. tax hikes and budget cuts confront a divided Congress.

The focus is also shifting from the results of the U.S. election to economic factors overseas. Greek politicians are scheduled to vote tonight on a new round of austerity measures, hoping that agreeing to further reforms will secure payment of additional bailout monies. Strikes are scheduled to accompany the vote.

Plans to increase the European Union budget by 5 percent have been called ludicrous by British prime minister David Cameron and Vitor Caldeira, president of the European Court of Auditors,and has said the European Union is not yet up to standard after the publication of the Court’s report on last year’s EU budget Tuesday.

China is also set to overtake India as the world’s largest gold buying nation, according to the vice president of the country’s largest gold producer, China National Gold. Song Xin said China’s large increase in gold consumption would have a positive impact to the global gold market.

Xin added that China’s production is expected to reach 380 tonnes this year, meaning the country will continue to be the world’s leading gold producer.

]]>November 7, 2012 - After a pre-emptive surge to the $1,730 per troy ounce level on Tuesday, a two-week high, gold dropped back to the $1,720 per troy ounce level on Wednesday morning in London.

A note from Commerzbank read that gold is making significant gains on the back of a weak U.S. dollar.

Prices for silver reached their highest levels in a week before dropping back below $32 per troy ounce.

Junya Tanase, chief currency strategist at JPMorgan Chase in Tokyo, said Obama’s re-election is likely to boost expectations of continued easing by the Fed. She added, JPMorgan Chase forecasts gold would end the year at $1,780 per troy ounce and peak late in 2013 at around $1,890 per troy ounce. She sees upside risks to these forecast highs in the event of additional U.S. policy easing or signs of inflation following the liquidity injections of the past four years.

Michiyoshi Kato, senior vice president of foreign-currency sales at Mizuho Corporate Bank in Tokyo, said monetary policy will remain loose under Obama and the dollar will be sold. Though the dollar-selling may not last long as the U.S. faces the fiscal cliff, the U.S. tax hikes and budget cuts confront a divided Congress.

The focus is also shifting from the results of the U.S. election to economic factors overseas. Greek politicians are scheduled to vote tonight on a new round of austerity measures, hoping that agreeing to further reforms will secure payment of additional bailout monies. Strikes are scheduled to accompany the vote.

Plans to increase the European Union budget by 5 percent have been called ludicrous by British prime minister David Cameron and Vitor Caldeira, president of the European Court of Auditors,and has said the European Union is not yet up to standard after the publication of the Court’s report on last year’s EU budget Tuesday.

China is also set to overtake India as the world’s largest gold buying nation, according to the vice president of the country’s largest gold producer, China National Gold. Song Xin said China’s large increase in gold consumption would have a positive impact to the global gold market.

Xin added that China’s production is expected to reach 380 tonnes this year, meaning the country will continue to be the world’s leading gold producer.

Investors are hoarding a record amount of bullion as central banks pledge to do more to spur economic growth as gold traders report being the most bullish on gold in ten weeks.

A survey by Bloomberg reports eighteen of twenty-seven respondents expecting the price to rise next week with only five bearish. Four were neutral. The proportion of bullish calls is the highest since August 24.

Holdings in gold-backed exchange-traded products gained in the past three months, the strongest run since August 2011, according to data compiled by Bloomberg. Yesterday, holdings reached a record 2,588.4 metric tons, valued at $140 billion.

The Bank of Japan expanded its asset-purchase program on October 30 for the second time in two months, with additional funds of 11 trillion yet, ($137 billion). Last week, the Federal Reserve stated it plans to continue buying bonds and central banks from Europe to China have also pledged action to boost economies.

Gold gained 70 percent as the Fed bought $2.3 trillion of debt in two rounds of quantitative easing from December 2008 through June 2011.

Gold gained 7.6 percent to $1,681.97 per troy ounce in London this year, in line for a twelfth straight annual gain, which would be the longest winning streak for the metal in at least nine decades.

On Friday, bullion lost as much as 2 percent to a two-month low as the U.S. jobs report from the Labor Department reported American employers added more jobs to the payroll than had been projected, which cast doubt on the stimulus from the Fed which had been tied to the health of the job market.

The Bank of Japan said its fund will increase to 66 trillion yen, a separate credit loan program will maintain 25 trillion yen, and it will offer unlimited loans to banks to boost credit demand. The Fed stated on October 24 that it will continue $40 billion in monthly purchases of mortgage debt and will probably hold current interest rates near zero until mid-2015. The European Central Bank has said it is ready to buy bonds of indebted nations and China approved a $158 billion subways-to-roads construction plan.

The prospect of stimulus impacts in precious metals markets is a major driver for investor sentiment and a major contributory for the current eleven year bull run in precious metals.

]]>November 5, 2012

Investors are hoarding a record amount of bullion as central banks pledge to do more to spur economic growth as gold traders report being the most bullish on gold in ten weeks.

A survey by Bloomberg reports eighteen of twenty-seven respondents expecting the price to rise next week with only five bearish. Four were neutral. The proportion of bullish calls is the highest since August 24.

Holdings in gold-backed exchange-traded products gained in the past three months, the strongest run since August 2011, according to data compiled by Bloomberg. Yesterday, holdings reached a record 2,588.4 metric tons, valued at $140 billion.

The Bank of Japan expanded its asset-purchase program on October 30 for the second time in two months, with additional funds of 11 trillion yet, ($137 billion). Last week, the Federal Reserve stated it plans to continue buying bonds and central banks from Europe to China have also pledged action to boost economies.

Gold gained 70 percent as the Fed bought $2.3 trillion of debt in two rounds of quantitative easing from December 2008 through June 2011.

Gold gained 7.6 percent to $1,681.97 per troy ounce in London this year, in line for a twelfth straight annual gain, which would be the longest winning streak for the metal in at least nine decades.

On Friday, bullion lost as much as 2 percent to a two-month low as the U.S. jobs report from the Labor Department reported American employers added more jobs to the payroll than had been projected, which cast doubt on the stimulus from the Fed which had been tied to the health of the job market.

The Bank of Japan said its fund will increase to 66 trillion yen, a separate credit loan program will maintain 25 trillion yen, and it will offer unlimited loans to banks to boost credit demand. The Fed stated on October 24 that it will continue $40 billion in monthly purchases of mortgage debt and will probably hold current interest rates near zero until mid-2015. The European Central Bank has said it is ready to buy bonds of indebted nations and China approved a $158 billion subways-to-roads construction plan.

The prospect of stimulus impacts in precious metals markets is a major driver for investor sentiment and a major contributory for the current eleven year bull run in precious metals.

The release of today’s U.S. nonfarm payrolls data indicates an increase in jobs by 171,000 in the month of October, a significant level above the anticipated 125,000, though the jobless rate remains at 7.9 percent.

The news hit markets immediately with a rebound in the strength of the U.S. dollar, early gains in stocks, which were later erased, and a drop in the precious metals.

The jobs report has been long anticipated after the Federal Reserve tied the current round of quantitative easing to the health of the labor market. Because no long-term, open-ended stimulus policy has been announced by the Fed, particularly not one contingent in scope on the health of the job market, investors looked to this jobless report for an indication as to the direction of markets.

Gold traded between $1,716 at its high and touched lows at $1,684 per troy ounce, the price of gold breaking though the psychologically important $1,700 per troy ounce level that had been providing solid support for the metal all week amidst market pressure downward.

MIG Bank analyst Bijoy Kar said the strong resistance between $1,791 and $1,803, coupled with overbought conditions, favors a corrective phase. Kar expects strong support at $1,647 to hold as the metal trades in a secular uptrend with stronger support at $1,523.

Since the inception of quantitative easing, gold has lack upward drivers as the market experiences an atypical lack of investor demand from Chinese and Indian gold markets, traditionally the largest markets for gold in the world. Despite going into the festival seasons, in which gold is exchanged as a gift, several factors have contributed to a subdued gold market, including government regulation and taxation.

U.S. Mint sales depict a particularly mixed precious metals market with sales of U.S. Mint Gold and Silver Eagles Coins weaker than the previous month but higher than sales figures from October of last year. In many categories, only one or two months of 2012 beat October’s sales figures, despite a cautious investor landscape.

As precious metal continue to price in the style and format of the new quantitative easing, absent demand in foreign markets, the mixed signals of the market will likely contribute to the cautious sentiment.

]]>November 02, 2012

The release of today’s U.S. nonfarm payrolls data indicates an increase in jobs by 171,000 in the month of October, a significant level above the anticipated 125,000, though the jobless rate remains at 7.9 percent.

The news hit markets immediately with a rebound in the strength of the U.S. dollar, early gains in stocks, which were later erased, and a drop in the precious metals.

The jobs report has been long anticipated after the Federal Reserve tied the current round of quantitative easing to the health of the labor market. Because no long-term, open-ended stimulus policy has been announced by the Fed, particularly not one contingent in scope on the health of the job market, investors looked to this jobless report for an indication as to the direction of markets.

Gold traded between $1,716 at its high and touched lows at $1,684 per troy ounce, the price of gold breaking though the psychologically important $1,700 per troy ounce level that had been providing solid support for the metal all week amidst market pressure downward.

MIG Bank analyst Bijoy Kar said the strong resistance between $1,791 and $1,803, coupled with overbought conditions, favors a corrective phase. Kar expects strong support at $1,647 to hold as the metal trades in a secular uptrend with stronger support at $1,523.

Since the inception of quantitative easing, gold has lack upward drivers as the market experiences an atypical lack of investor demand from Chinese and Indian gold markets, traditionally the largest markets for gold in the world. Despite going into the festival seasons, in which gold is exchanged as a gift, several factors have contributed to a subdued gold market, including government regulation and taxation.

U.S. Mint sales depict a particularly mixed precious metals market with sales of U.S. Mint Gold and Silver Eagles Coins weaker than the previous month but higher than sales figures from October of last year. In many categories, only one or two months of 2012 beat October’s sales figures, despite a cautious investor landscape.

As precious metal continue to price in the style and format of the new quantitative easing, absent demand in foreign markets, the mixed signals of the market will likely contribute to the cautious sentiment.

Until 1874, the only currency in circulation in South Africa was British. At that time, two indigenous currencies were introduced. A trading store in East Griqualand, Strachan and Company, issued trade tokens which would be widely used as currency for over fifty years along the east coast of South Africa.

In the north, President Burgers had a batch of gold coins struck for the South African Republic. Over time, the coins became known as the Burgers Pond. Though they were never put into circulation, they were the first South African coins to be struck.

Thomas Francois Burgers occupied the presidency of the former South African Republic from 1872 to 1877 and studied theology in the Netherlands before returning to South Africa to work as a priest. His liberal ideas, however, brought him into conflict with the Dutch Reformed Church and in 1864 he was suspended from the ministry. However, Burgers remained very popular with the citizens of the republic, who urged him to stand for the presidency to which a considerable majority elected him in 1872.

Burgers is perhaps best known for the minting of South Africa’s first gold coins. The citizenry had been petitioning for indigenous coinage from 1853, and in 1874 President Burgers purchased 300 ounces of gold and sent it to J.J. Pratt, the Republic’s Consul-General in London with the request the coins be struck in the same size as the English pound.

695 coins were produced in July 1874, the first batch, to be known as the fine beard variety, nicknamed after the portrait of Burgers in full beard that is depicted on the reverse. The second batch of 142 was to be known as the coarse beard variety as the original die used to stamp the coins broke and a new die had to be created to produce the remainder. The second die was slightly different and produced a thicker and coarser beard on the president.

Upon presentation of the coins to the Volksraad, the parliament of the South African Republic, the president was heavily criticized for using the Republic’s money to produce coins bearing his image. This was called egotistical and was said by parliament to be done for the president’s own vanity. Following the overwhelmingly negative response to the coins, no new coins were struck and the coins were never allowed to circulate.\

The coins were kept, instead, by the members of the Volksraad as keepsakes, many of them being mounted as jewelry or adornments.

The low mintage and the unique history of the coin make the Burgers Pond a rare and desirable coin that offers a story in addition to its monetary value.November 01, 2012 - Until 1874, the only currency in circulation in South Africa was British. At that time, two indigenous currencies were introduced. A trading store in East Griqualand, Strachan and Company, issued trade tokens which would be widely used as currency for over fifty years along the east coast of South Africa.

In the north, President Burgers had a batch of gold coins struck for the South African Republic. Over time, the coins became known as the Burgers Pond. Though they were never put into circulation, they were the first South African coins to be struck.

Thomas Francois Burgers occupied the presidency of the former South African Republic from 1872 to 1877 and studied theology in the Netherlands before returning to South Africa to work as a priest. His liberal ideas, however, brought him into conflict with the Dutch Reformed Church and in 1864 he was suspended from the ministry. However, Burgers remained very popular with the citizens of the republic, who urged him to stand for the presidency to which a considerable majority elected him in 1872.

Burgers is perhaps best known for the minting of South Africa’s first gold coins. The citizenry had been petitioning for indigenous coinage from 1853, and in 1874 President Burgers purchased 300 ounces of gold and sent it to J.J. Pratt, the Republic’s Consul-General in London with the request the coins be struck in the same size as the English pound.

695 coins were produced in July 1874, the first batch, to be known as the fine beard variety, nicknamed after the portrait of Burgers in full beard that is depicted on the reverse. The second batch of 142 was to be known as the coarse beard variety as the original die used to stamp the coins broke and a new die had to be created to produce the remainder. The second die was slightly different and produced a thicker and coarser beard on the president.

Upon presentation of the coins to the Volksraad, the parliament of the South African Republic, the president was heavily criticized for using the Republic’s money to produce coins bearing his image. This was called egotistical and was said by parliament to be done for the president’s own vanity. Following the overwhelmingly negative response to the coins, no new coins were struck and the coins were never allowed to circulate.\

The coins were kept, instead, by the members of the Volksraad as keepsakes, many of them being mounted as jewelry or adornments.

The low mintage and the unique history of the coin make the Burgers Pond a rare and desirable coin that offers a story in addition to its monetary value.

]]>November 01, 2012

Until 1874, the only currency in circulation in South Africa was British. At that time, two indigenous currencies were introduced. A trading store in East Griqualand, Strachan and Company, issued trade tokens which would be widely used as currency for over fifty years along the east coast of South Africa.

In the north, President Burgers had a batch of gold coins struck for the South African Republic. Over time, the coins became known as the Burgers Pond. Though they were never put into circulation, they were the first South African coins to be struck.

Thomas Francois Burgers occupied the presidency of the former South African Republic from 1872 to 1877 and studied theology in the Netherlands before returning to South Africa to work as a priest. His liberal ideas, however, brought him into conflict with the Dutch Reformed Church and in 1864 he was suspended from the ministry. However, Burgers remained very popular with the citizens of the republic, who urged him to stand for the presidency to which a considerable majority elected him in 1872.

Burgers is perhaps best known for the minting of South Africa’s first gold coins. The citizenry had been petitioning for indigenous coinage from 1853, and in 1874 President Burgers purchased 300 ounces of gold and sent it to J.J. Pratt, the Republic’s Consul-General in London with the request the coins be struck in the same size as the English pound.

695 coins were produced in July 1874, the first batch, to be known as the fine beard variety, nicknamed after the portrait of Burgers in full beard that is depicted on the reverse. The second batch of 142 was to be known as the coarse beard variety as the original die used to stamp the coins broke and a new die had to be created to produce the remainder. The second die was slightly different and produced a thicker and coarser beard on the president.

Upon presentation of the coins to the Volksraad, the parliament of the South African Republic, the president was heavily criticized for using the Republic’s money to produce coins bearing his image. This was called egotistical and was said by parliament to be done for the president’s own vanity. Following the overwhelmingly negative response to the coins, no new coins were struck and the coins were never allowed to circulate.\

The coins were kept, instead, by the members of the Volksraad as keepsakes, many of them being mounted as jewelry or adornments.

The low mintage and the unique history of the coin make the Burgers Pond a rare and desirable coin that offers a story in addition to its monetary value.

]]>http://www.gold-bullion.org/bullion//#13517949914057http://www.gold-bullion.org/bullion/US-Markets-Pause-on-Storm-Growth-Concerns/
Mon, 29 Oct 2012 11:48:34 -0700October 29, 2012 - Gold found strong support at the $1,700 per troy ounce level after dips in trading last week revived fears that the correction in gold would take it much lower, though the market is seen as lacking the necessary drivers at the current time to continue its trajectory upward.

The $1,700 level has been repeatedly tested in the gold market, reassuring buyers who feared a deeper correction following a six-week low at $1,698.39 on October 24, according to Reuters.

Recent downbeat corporate earnings reports, uncertainty over the direction of the European Union’s sovereign debt crisis, and a major hurricane battering the East Coast of the U.S. are contributory factors to a lack of drivers in the gold market to start the week.

U.S. stock markets will be closed on Monday and possibly on Tuesday, according to the operator of the New York Stock Exchange, as the East Coast endures Hurricane Sandy. Public transit in New York City has been shut down, though some online trading is set to continue.

The spot price of gold lost 0.1 percent to $1,709.30 per troy ounce as U.S. gold futures for December delivery dropped $1.90 per troy ounce to $1,709.90.

Hedge funds and money managers have cut their bullish bets in gold and silver futures on fresh concerns over the U.S. Federal Reserve’s monetary stimulus. Friday will feature the release of the U.S. jobs report, which will be analyzed by traders for an indication as to the Federal Reserve’s stimulus in effect and projection. The Fed has tied the continuation of its stimulus to the labor market.

Precious metals have been sluggish if not down across the board, and silver is no exception in early trading on Monday with the spot price down 0.8 percent to $31.75 per troy ounce. Silver futures contracts for December delivery continue to hover near a seven-week low and prices on the daily bar chart are in a four-week-old downtrend. Silver has support at $31.535 and $31.25 as well as resistance at $32.00 on the upside.

Last week’s high of $1,731.20 per troy ounce is the technical resistance on the upside for gold with the psychologically important $1,700 per troy ounce level providing solid support on the downside.

]]>October 29, 2012 - Gold found strong support at the $1,700 per troy ounce level after dips in trading last week revived fears that the correction in gold would take it much lower, though the market is seen as lacking the necessary drivers at the current time to continue its trajectory upward.

The $1,700 level has been repeatedly tested in the gold market, reassuring buyers who feared a deeper correction following a six-week low at $1,698.39 on October 24, according to Reuters.

Recent downbeat corporate earnings reports, uncertainty over the direction of the European Union’s sovereign debt crisis, and a major hurricane battering the East Coast of the U.S. are contributory factors to a lack of drivers in the gold market to start the week.

U.S. stock markets will be closed on Monday and possibly on Tuesday, according to the operator of the New York Stock Exchange, as the East Coast endures Hurricane Sandy. Public transit in New York City has been shut down, though some online trading is set to continue.

The spot price of gold lost 0.1 percent to $1,709.30 per troy ounce as U.S. gold futures for December delivery dropped $1.90 per troy ounce to $1,709.90.

Hedge funds and money managers have cut their bullish bets in gold and silver futures on fresh concerns over the U.S. Federal Reserve’s monetary stimulus. Friday will feature the release of the U.S. jobs report, which will be analyzed by traders for an indication as to the Federal Reserve’s stimulus in effect and projection. The Fed has tied the continuation of its stimulus to the labor market.

Precious metals have been sluggish if not down across the board, and silver is no exception in early trading on Monday with the spot price down 0.8 percent to $31.75 per troy ounce. Silver futures contracts for December delivery continue to hover near a seven-week low and prices on the daily bar chart are in a four-week-old downtrend. Silver has support at $31.535 and $31.25 as well as resistance at $32.00 on the upside.

Last week’s high of $1,731.20 per troy ounce is the technical resistance on the upside for gold with the psychologically important $1,700 per troy ounce level providing solid support on the downside.

]]>http://www.gold-bullion.org/bullion/US-Markets-Pause-on-Storm-Growth-Concerns/#13515365144055http://www.gold-bullion.org/bullion/Brazil-Increases-Gold-Reserves-for-First-Time-Since-December-2008/
Fri, 26 Oct 2012 13:29:43 -0700October 26, 2012 - Brazil has increased its gold reserves for the first time since December of 2008.

The data showed decreases as well, with Russia’s reserves dropping by 2.2 tons, Belarus by 1.5 tons, and the Czech Republic by 0.3 tons.

During the eleven-year Bull Run in the gold market, central banks have been expanding reserves as investors held record tonnage in bullion-backed exchange-traded products this month, according to data compiled by Bloomberg. Nations bought 254.2 tons in the first half of 2012 and may add nearly 500 tons for the year, according to the World Gold Council’s report released in August.

Dan Smith, a commodities analyst at Standard Chartered PLC in London, said his firm expects strong buying by central banks to continue as they will be encouraged by lower prices and continued worries about inflation and currency risks.

Turkey has accepted gold in its reserve requirements from commercial banks, partially contributing to its increase in bullion holdings.

Gold gained 0.2 percent to $1,714.19 per troy ounce after dropping as low as $1,700.34. U.S. gold futures for December delivery gained $3.00 per troy ounce to $1,716.00.

Markets have been coping with unanticipated sluggishness in precious metals following the announcement of the third round in Quantitative Easing in the U.S. The previous two rounds of Quantitative Easing have been very beneficial for precious metals markets as inflation concerns and low interest rates have boosted prices.

The third round of QE was different, however, partially because it is an open-ended policy. The anticipated effects of a surge in precious metals prices led many investors to initiate short-term positions in gold and silver. However, the influx, which occurred over some months, presumably, priced-in the effect of QE so that when it happened there were little gains to be made.

Following a 252-point drop in the Dow Jones on Tuesday, many investors had to pull their short-term positions at a loss to fund their positions in equities, a further obstacle for the precious metals markets.

]]>Brazil Increases Gold Reserves for First Time Since December 2008

October 26, 2012 - Brazil has increased its gold reserves for the first time since December of 2008.

The data showed decreases as well, with Russia’s reserves dropping by 2.2 tons, Belarus by 1.5 tons, and the Czech Republic by 0.3 tons.

During the eleven-year Bull Run in the gold market, central banks have been expanding reserves as investors held record tonnage in bullion-backed exchange-traded products this month, according to data compiled by Bloomberg. Nations bought 254.2 tons in the first half of 2012 and may add nearly 500 tons for the year, according to the World Gold Council’s report released in August.

Dan Smith, a commodities analyst at Standard Chartered PLC in London, said his firm expects strong buying by central banks to continue as they will be encouraged by lower prices and continued worries about inflation and currency risks.

Turkey has accepted gold in its reserve requirements from commercial banks, partially contributing to its increase in bullion holdings.

Gold gained 0.2 percent to $1,714.19 per troy ounce after dropping as low as $1,700.34. U.S. gold futures for December delivery gained $3.00 per troy ounce to $1,716.00.

Markets have been coping with unanticipated sluggishness in precious metals following the announcement of the third round in Quantitative Easing in the U.S. The previous two rounds of Quantitative Easing have been very beneficial for precious metals markets as inflation concerns and low interest rates have boosted prices.

The third round of QE was different, however, partially because it is an open-ended policy. The anticipated effects of a surge in precious metals prices led many investors to initiate short-term positions in gold and silver. However, the influx, which occurred over some months, presumably, priced-in the effect of QE so that when it happened there were little gains to be made.

Following a 252-point drop in the Dow Jones on Tuesday, many investors had to pull their short-term positions at a loss to fund their positions in equities, a further obstacle for the precious metals markets.

]]>http://www.gold-bullion.org/bullion/Brazil-Increases-Gold-Reserves-for-First-Time-Since-December-2008/#13512833834054http://www.gold-bullion.org/bullion/Recent-Drop-in-Gold-Seen-as-Short-Term-Speculators-as-Asian-Buying-Picks-Up/
Thu, 25 Oct 2012 13:41:44 -0700October 25, 2012 - Gold bullion traded at or near 7-week lows in U.S. and London markets as investors coped with a 1 percent drop for the week.

In spite of reports out of Greece that the Mediterranean country will allow another two years in order to meet its austerity budget targets, the euro currency maintained a drop below $1.30 after new German data indicated consumer confidence has fallen to a 32-month low.

The 17-nation Eurozone dropped further into decline at the start of the fourth quarter, according to the Markit PMI survey, which attributed the drop in manufacturing and service output as occurring at the fastest pace in more than three years.

Tuesday’s drop in gold bullion prices arrived amid a market-wide retreat, according to one analyst, with across-the-board selling by speculators, many of which entered the gold market in order to make short term gains following the recent announcements of an open-ended stimulus policy by the Federal Reserve.

The Dow dropped 252 points on Tuesday, spurring the same speculators to pull their positions in precious metals to fund their margins within equities.

Nomura analysts reported in a note that the reduction in short-term speculative positions suggests that the recent move lower in gold has been related to short-term investors.

Ironically, the price drop has spurred buying in markets that have been on the sidelines waiting for higher prices, and their jumping into the market may be enough physical demand to push gold prices higher.

India, the world’s largest consumer market for gold, is preparing for next month’s Diwali festival which marks the peak of annual demand. Dealers reported bargain hunting by jewelers and other sellers, according to the local press.

The low prices lured jewelers back into the markets as buyers after India’s gold demand has been under pressure from record-high domestic prices with the Indian rupee weakened against the U.S. dollar. Gold traded in dollars is more expensive for holders of the rupee, in addition to taxes imposed by the government.

U.S. gold for December delivery gained $14.50, or 0.9 percent, to $1,716.10 per troy ounce on the Comex Division of the New York Mercantile Exchange on Thursday after futures reached their lowest levels in seven weeks on Wednesday.

]]>Recent Drop in Gold Seen as Short-Term Speculators as Asian Buying Picks Up

October 25, 2012 - Gold bullion traded at or near 7-week lows in U.S. and London markets as investors coped with a 1 percent drop for the week.

In spite of reports out of Greece that the Mediterranean country will allow another two years in order to meet its austerity budget targets, the euro currency maintained a drop below $1.30 after new German data indicated consumer confidence has fallen to a 32-month low.

The 17-nation Eurozone dropped further into decline at the start of the fourth quarter, according to the Markit PMI survey, which attributed the drop in manufacturing and service output as occurring at the fastest pace in more than three years.

Tuesday’s drop in gold bullion prices arrived amid a market-wide retreat, according to one analyst, with across-the-board selling by speculators, many of which entered the gold market in order to make short term gains following the recent announcements of an open-ended stimulus policy by the Federal Reserve.

The Dow dropped 252 points on Tuesday, spurring the same speculators to pull their positions in precious metals to fund their margins within equities.

Nomura analysts reported in a note that the reduction in short-term speculative positions suggests that the recent move lower in gold has been related to short-term investors.

Ironically, the price drop has spurred buying in markets that have been on the sidelines waiting for higher prices, and their jumping into the market may be enough physical demand to push gold prices higher.

India, the world’s largest consumer market for gold, is preparing for next month’s Diwali festival which marks the peak of annual demand. Dealers reported bargain hunting by jewelers and other sellers, according to the local press.

The low prices lured jewelers back into the markets as buyers after India’s gold demand has been under pressure from record-high domestic prices with the Indian rupee weakened against the U.S. dollar. Gold traded in dollars is more expensive for holders of the rupee, in addition to taxes imposed by the government.

U.S. gold for December delivery gained $14.50, or 0.9 percent, to $1,716.10 per troy ounce on the Comex Division of the New York Mercantile Exchange on Thursday after futures reached their lowest levels in seven weeks on Wednesday.

U.S. gold futures for December delivery gained $3.00 to $1,726.80 per troy ounce on the Comex division of the New York Mercantile Exchange. The spot price of gold traded at highs of $1,728.80 per troy ounce and reached an overnight price of $1,714.40 per troy ounce, a six-week low.

George Gero, a precious metals strategist at RBC Wealth Management, wrote in a note that a wait and see attitude is prevailing ahead of the FOMC’s two-day meeting. Traders are carefully looking to the headlines for inflationary signs while re-examining sell stops and buy stops.

U.S. silver futures for December delivery gained $0.27 to $32.37 per troy ounce as the U.S. dollar index lost 0.04 percent.

Uncertainty over the Spanish bailout continued to bring some pause to markets, though the ability of the incumbent conservative party to hold onto favor in Spanish regional elections does indicate the country will likely soon request a bailout from the EU. The news of the regional Spanish elections is the first indication in weeks that Spain will proceed officially to request a bailout, a step that the markets have been anticipating for some weeks. It is widely thought the Spanish request for a bailout with initiate the latest bond-purchasing program announced by the European Central Bank, which will immediately affect currencies and wider financial markets.

The FOMC meeting this week will provide the first official update to the progress made since the Federal Reserve announced its open-ended mortgage-backed securities purchasing program in mid-September. On its inception, the Federal Reserve said it would continue the program until it witnessed a prolonged strengthening in the labor market and overall economic conditions.

Gold began a rally on the announcement of the bond-purchasing program, commonly known as Quantitative Easing 3, but the rally has come under pressure after long-positions initiated by hedge funds and large speculators failed to perform as well as hoped, repeatedly drawing near the $1,800 per troy ounce level, but never breaching it.

]]>Gold Price Gains Ahead of Fed Meeting

October 22, 2012 - The price of gold gained during Monday trading ahead of the Federal Reserve’s two-day Federal Open Markets Committee meeting that carries the expectation of an announcement on interest rates for Wednesday.

U.S. gold futures for December delivery gained $3.00 to $1,726.80 per troy ounce on the Comex division of the New York Mercantile Exchange. The spot price of gold traded at highs of $1,728.80 per troy ounce and reached an overnight price of $1,714.40 per troy ounce, a six-week low.

George Gero, a precious metals strategist at RBC Wealth Management, wrote in a note that a wait and see attitude is prevailing ahead of the FOMC’s two-day meeting. Traders are carefully looking to the headlines for inflationary signs while re-examining sell stops and buy stops.

U.S. silver futures for December delivery gained $0.27 to $32.37 per troy ounce as the U.S. dollar index lost 0.04 percent.

Uncertainty over the Spanish bailout continued to bring some pause to markets, though the ability of the incumbent conservative party to hold onto favor in Spanish regional elections does indicate the country will likely soon request a bailout from the EU. The news of the regional Spanish elections is the first indication in weeks that Spain will proceed officially to request a bailout, a step that the markets have been anticipating for some weeks. It is widely thought the Spanish request for a bailout with initiate the latest bond-purchasing program announced by the European Central Bank, which will immediately affect currencies and wider financial markets.

The FOMC meeting this week will provide the first official update to the progress made since the Federal Reserve announced its open-ended mortgage-backed securities purchasing program in mid-September. On its inception, the Federal Reserve said it would continue the program until it witnessed a prolonged strengthening in the labor market and overall economic conditions.

Gold began a rally on the announcement of the bond-purchasing program, commonly known as Quantitative Easing 3, but the rally has come under pressure after long-positions initiated by hedge funds and large speculators failed to perform as well as hoped, repeatedly drawing near the $1,800 per troy ounce level, but never breaching it.

]]>http://www.gold-bullion.org/bullion/Gold-Price-Gains-Ahead-of-Fed-Meeting/#13509417214049http://www.gold-bullion.org/bullion/Gold-Drop-Blamed-on-Speculation-European-Politicians/
Fri, 19 Oct 2012 11:49:36 -0700October 19, 2012 - The spot price of gold dropped to $1,732 per troy ounce in early trading in London Friday morning close to one-month lows. Stock markets and the euro fell following the conclusion of the two-day European Union summit in Brussels that yielded few results.

The dollar price for gold heading into the weekend appears poised for its second successive weekly drop, a first for the gold market since trading in May.

It adds in recent weeks they had strongly built up positions and may now be seeing themselves forced to take profits given the faltering upswing.

The price of silver is also down in morning trading, touching a six-week low at $32.26 per troy ounce. Other commodities experienced gains in daily trading.

European leaders took a step toward the creation of a single Eurozone banking supervisor on Thursday but neglected to reach a consensus or compromise on several other issues facing the Euro bloc, including a delay by Spain to formally request a bailout from the European Union.

An unnamed EU official is quoted by the Financial Times as saying Thursday’s agreement papers cover significant differences. The direct recap, a prominent issue in current negotiations, is going to be much more difficult according to the source.

Reuters has been briefed by a French source saying they expect direct recapitalization could occur as early as the first quarter of next year, though a German government source told the same news source it is very unlikely to happen soon.

The conclusions of the European summit, published on Friday, did not mention Spain or Greece despite the burgeoning debt problems in both nations.

A lack of clear direction out of the European Union has been lagging the precious metals market, contributing to the failure of the post-QE3 rally in gold. Spain in particular, which has delayed a formal request for a bailout from the EU, is giving mixed signals for the direction of the euro making gold unsure how to react. Meanwhile technical selling on the failed rally is the primary driver for gold downward.

]]>Gold Drop Blamed on Speculation, European Politicians

October 19, 2012 - The spot price of gold dropped to $1,732 per troy ounce in early trading in London Friday morning close to one-month lows. Stock markets and the euro fell following the conclusion of the two-day European Union summit in Brussels that yielded few results.

The dollar price for gold heading into the weekend appears poised for its second successive weekly drop, a first for the gold market since trading in May.

It adds in recent weeks they had strongly built up positions and may now be seeing themselves forced to take profits given the faltering upswing.

The price of silver is also down in morning trading, touching a six-week low at $32.26 per troy ounce. Other commodities experienced gains in daily trading.

European leaders took a step toward the creation of a single Eurozone banking supervisor on Thursday but neglected to reach a consensus or compromise on several other issues facing the Euro bloc, including a delay by Spain to formally request a bailout from the European Union.

An unnamed EU official is quoted by the Financial Times as saying Thursday’s agreement papers cover significant differences. The direct recap, a prominent issue in current negotiations, is going to be much more difficult according to the source.

Reuters has been briefed by a French source saying they expect direct recapitalization could occur as early as the first quarter of next year, though a German government source told the same news source it is very unlikely to happen soon.

The conclusions of the European summit, published on Friday, did not mention Spain or Greece despite the burgeoning debt problems in both nations.

A lack of clear direction out of the European Union has been lagging the precious metals market, contributing to the failure of the post-QE3 rally in gold. Spain in particular, which has delayed a formal request for a bailout from the EU, is giving mixed signals for the direction of the euro making gold unsure how to react. Meanwhile technical selling on the failed rally is the primary driver for gold downward.

]]>http://www.gold-bullion.org/bullion/Gold-Drop-Blamed-on-Speculation-European-Politicians/#13506725764047http://www.gold-bullion.org/bullion/Euro-Denominated-Gold-Hits-6-Week-Low/
Wed, 17 Oct 2012 11:10:38 -0700October 17, 2012 - After an early dip in London trading Wednesday morning, wholesale bullion prices recovered, rising to $1,750 per tory ounce as European stock markets gained and the euro strengthened to its highest levels in nearly a month.

The gain in the euro brought prices for French, German, and Italian investors to buy gold to a six-week low at 1,333 euro per troy ounce. The price level is pegged 4 percent lower than the all-time high for euro denominated gold set on October 1st.

Sydney Alex Thorndike, a senior trader with MKS, said the majority of gold dealers with whom he has spoken feel there is significant support on any pullback in the gold price toward $1,675-$1,700 per troy ounce.

Most of those dealers, and Thorndike aswell, believe long-term macro investment buying and possibly central bank demand would be triggered by prices at these levels as well as a reinvigoration of physical demand in India, one of the world’s largest gold markets.

Commodities were stable on Wednesday as Spanish bond yields dropped overnight following Moody’s announcement that it would not downgrade the credit rating of the debt-beleaguered nation. Spain is widely expected to issue a formal request for a bailout from the European Union in coming days. Recent reports out of Spain indicate the country is closer to such a request.

Spain’s 10-year bond yields eased to their lowest spread above comparable German debt in six months.

UBS strategist Edel Tully wrote in a note that gold and the precious metals complex have been held afloat overnight and this morning by the stronger euro. Tully added that gold’s ability to stay buoyed today will be dependent on foreign exchange moves and risk appetite.

Silver prices extended the recent rally to 1.8 percent after Monday’s six-week low in dollar-denominated silver. A $33 mark was reached in the midday London Silver Fix, but prices retraced in later trading.

Analysts with London market maker HSBC wrote in a note that China’s near-term appetite for gold seems to be waning as bullion imports from Hong Kong slows. Imports of gold bullion from Hong Kong to Mainland China have dropped 30 percent during the month of August, compared with rates from a year earlier.

]]>Euro-Denominated Gold Hits 6-Week Low

October 17, 2012 - After an early dip in London trading Wednesday morning, wholesale bullion prices recovered, rising to $1,750 per tory ounce as European stock markets gained and the euro strengthened to its highest levels in nearly a month.

The gain in the euro brought prices for French, German, and Italian investors to buy gold to a six-week low at 1,333 euro per troy ounce. The price level is pegged 4 percent lower than the all-time high for euro denominated gold set on October 1st.

Sydney Alex Thorndike, a senior trader with MKS, said the majority of gold dealers with whom he has spoken feel there is significant support on any pullback in the gold price toward $1,675-$1,700 per troy ounce.

Most of those dealers, and Thorndike aswell, believe long-term macro investment buying and possibly central bank demand would be triggered by prices at these levels as well as a reinvigoration of physical demand in India, one of the world’s largest gold markets.

Commodities were stable on Wednesday as Spanish bond yields dropped overnight following Moody’s announcement that it would not downgrade the credit rating of the debt-beleaguered nation. Spain is widely expected to issue a formal request for a bailout from the European Union in coming days. Recent reports out of Spain indicate the country is closer to such a request.

Spain’s 10-year bond yields eased to their lowest spread above comparable German debt in six months.

UBS strategist Edel Tully wrote in a note that gold and the precious metals complex have been held afloat overnight and this morning by the stronger euro. Tully added that gold’s ability to stay buoyed today will be dependent on foreign exchange moves and risk appetite.

Silver prices extended the recent rally to 1.8 percent after Monday’s six-week low in dollar-denominated silver. A $33 mark was reached in the midday London Silver Fix, but prices retraced in later trading.

Analysts with London market maker HSBC wrote in a note that China’s near-term appetite for gold seems to be waning as bullion imports from Hong Kong slows. Imports of gold bullion from Hong Kong to Mainland China have dropped 30 percent during the month of August, compared with rates from a year earlier.

]]>http://www.gold-bullion.org/bullion/Euro-Denominated-Gold-Hits-6-Week-Low/#13504974384046http://www.gold-bullion.org/bullion/Gold-and-Silver-Investors-Watch-Core-PPI-Fall/
Mon, 15 Oct 2012 13:29:20 -0700October 15, 2012 - The recent rally in gold and silver kicked off with the speculation on the third round of Quantitative Easing, gathering a great deal of steam after the announcement of the monetary stimulus. Additionally, the announcement of a bond-buying program by the European Central Bank has fueled the rally in precious metals and leant technical strength to bulls in the market.

Precious metals investors are also taking notice of how the market reacted to the recent announcement of the Producer Price Index data by the U.S. Bureau of Labor Statistics.

The BLS releases separate PPI numbers for finished goods, intermediate goods, and crude goods. Core PPI numbers, the highly volatile indication of future inflation, dropped following the announcement of QE3. Core PPI numbers do not include food and energy, which is a significant locus of price inflation in the current market.

Gold and silver investors are traditionally concerned about inflation in currency or the effect of negative market events on the purchasing power of currency. The current drop in the PPI numbers do not indicate, per the construction of the report, inflation in the currency.

The effect of the monetary easing, of course, will not be immediately felt in markets. Particularly the structure of QE3, which is different from QE1 and QE2, does not indicate an immediate effect of inflation in the form the precious metals markets are accustomed to.

QE3 entails the purchase of Mortgage Backed Securities by the Federal Reserve, which is not a purchase of goods with no value in return. Mortgage Backed Securities do have a value on the open market, and though they are being purchased by the central bank in a monetary easing policy, it is not the same structure as previous versions of easing and the inflationary aspect will be different.

Investors looking for short-term speculation, fast momentum, and easy gains on Quantitative Easing look to be taking profit after the recent rally, though the structure of the program has made the curve slightly different in this round.

After the release of the PPI data at 8:30 am Eastern, which indicated a drop in the Index and less evidence of inflation in consumer goods, gold and silver began picking up in trading, possibly on investors following the momentum in markets.

Selling in precious metals markets accelerated as prices dropped through a key support level near the late September low at $1,737.50 per troy ounce.

The spot price of gold was 1 percent lower to $1,735 per troy ounce.

]]>

Gold and Silver Investors Watch Core PPI Fall

October 15, 2012 - The recent rally in gold and silver kicked off with the speculation on the third round of Quantitative Easing, gathering a great deal of steam after the announcement of the monetary stimulus. Additionally, the announcement of a bond-buying program by the European Central Bank has fueled the rally in precious metals and leant technical strength to bulls in the market.

Precious metals investors are also taking notice of how the market reacted to the recent announcement of the Producer Price Index data by the U.S. Bureau of Labor Statistics.

The BLS releases separate PPI numbers for finished goods, intermediate goods, and crude goods. Core PPI numbers, the highly volatile indication of future inflation, dropped following the announcement of QE3. Core PPI numbers do not include food and energy, which is a significant locus of price inflation in the current market.

Gold and silver investors are traditionally concerned about inflation in currency or the effect of negative market events on the purchasing power of currency. The current drop in the PPI numbers do not indicate, per the construction of the report, inflation in the currency.

The effect of the monetary easing, of course, will not be immediately felt in markets. Particularly the structure of QE3, which is different from QE1 and QE2, does not indicate an immediate effect of inflation in the form the precious metals markets are accustomed to.

QE3 entails the purchase of Mortgage Backed Securities by the Federal Reserve, which is not a purchase of goods with no value in return. Mortgage Backed Securities do have a value on the open market, and though they are being purchased by the central bank in a monetary easing policy, it is not the same structure as previous versions of easing and the inflationary aspect will be different.

Investors looking for short-term speculation, fast momentum, and easy gains on Quantitative Easing look to be taking profit after the recent rally, though the structure of the program has made the curve slightly different in this round.

After the release of the PPI data at 8:30 am Eastern, which indicated a drop in the Index and less evidence of inflation in consumer goods, gold and silver began picking up in trading, possibly on investors following the momentum in markets.

Selling in precious metals markets accelerated as prices dropped through a key support level near the late September low at $1,737.50 per troy ounce.

]]>http://www.gold-bullion.org/bullion/Gold-and-Silver-Investors-Watch-Core-PPI-Fall/#13503329604043http://www.gold-bullion.org/bullion/Gold-at-11-Month-High-Ahead-of-Key-U.S.-Jobs-Report/
Sat, 06 Oct 2012 06:04:16 -0700October 6, 2012 - Gold reached a high not seen since last November in trading on Friday, drawing some steam from euro strength following the European Central Bank’s restatement of a preparedness to assist indebted nations as looking toward a key U.S. employment report due out Friday for more direction.

The ECB kept interest rate levels unchanged following their meeting on Thursday and announced that it would buy more government bonds from debt-strapped Euro zone members to hold off the persistent risk to growth.

Having breached the $1,795 per troy ounce level earlier in trading on Friday, the spot price of gold gained 0.1 percent to $1,789.29 per troy ounce. The yellow metal took a course to log its strongest weekly gain since mid-September.

The key U.S. jobs report, an indication to the Federal Reserve’s stance on monetary policy, showed a drop in the unemployment rate to 7.8 percent, the first time the level of unemployment in the U.S. has been below 8 percent since President Obama took office. Stocks responded with a strong rally and the price of gold experienced an initial drop of over $10 per troy ounce from above the $1,790 level to resistance at $1,780 before reaching the $1,775 level of resistance in late trading.

David Govett, head of precious metals at Marex Spectron, said the general consensus is that gold will break the psychologically key $1,800 level and if it can close above there, it will move towards $1,850. The U.S. non-farm payrolls report for September is heavily anticipated for an indication of whether the Federal Reserve’s third round of quantitative easing will have the intended effect on the labor market.

A poll conducted by Reuters indicated that the report will show 113,000 workers were added to payrolls in September, an addition on the 96,000 added during the last month. Private employment data, released on Wednesday and considered encouraging by analysts, has not been sufficient to change views that the Fed will maintain low interest rates until there are signs of substantive economic growth. Ronald Leung, a dealer at Lee Cheong Gold Dealers in Hong Kong, said that there doesn’t seem to be anything else they can do besides pumping more money into the economy, as quoted by Reuters. India, the world’s largest buyer of bullion, has shown an increase in physical buying as an appreciation in the rupee has seen domestic prices for gold reach a five- week low. Exchange-traded funds backed by physical gold increased holdings of the precious metal, adding another 418,611 ounces on October 4.

]]>October 6, 2012 - Gold reached a high not seen since last November in trading on Friday, drawing some steam from euro strength following the European Central Bank’s restatement of a preparedness to assist indebted nations as looking toward a key U.S. employment report due out Friday for more direction.

The ECB kept interest rate levels unchanged following their meeting on Thursday and announced that it would buy more government bonds from debt-strapped Euro zone members to hold off the persistent risk to growth.

Having breached the $1,795 per troy ounce level earlier in trading on Friday, the spot price of gold gained 0.1 percent to $1,789.29 per troy ounce. The yellow metal took a course to log its strongest weekly gain since mid-September.

The key U.S. jobs report, an indication to the Federal Reserve’s stance on monetary policy, showed a drop in the unemployment rate to 7.8 percent, the first time the level of unemployment in the U.S. has been below 8 percent since President Obama took office. Stocks responded with a strong rally and the price of gold experienced an initial drop of over $10 per troy ounce from above the $1,790 level to resistance at $1,780 before reaching the $1,775 level of resistance in late trading.

David Govett, head of precious metals at Marex Spectron, said the general consensus is that gold will break the psychologically key $1,800 level and if it can close above there, it will move towards $1,850. The U.S. non-farm payrolls report for September is heavily anticipated for an indication of whether the Federal Reserve’s third round of quantitative easing will have the intended effect on the labor market.

A poll conducted by Reuters indicated that the report will show 113,000 workers were added to payrolls in September, an addition on the 96,000 added during the last month. Private employment data, released on Wednesday and considered encouraging by analysts, has not been sufficient to change views that the Fed will maintain low interest rates until there are signs of substantive economic growth. Ronald Leung, a dealer at Lee Cheong Gold Dealers in Hong Kong, said that there doesn’t seem to be anything else they can do besides pumping more money into the economy, as quoted by Reuters. India, the world’s largest buyer of bullion, has shown an increase in physical buying as an appreciation in the rupee has seen domestic prices for gold reach a five- week low. Exchange-traded funds backed by physical gold increased holdings of the precious metal, adding another 418,611 ounces on October 4.

]]>http://www.gold-bullion.org/bullion/Gold-at-11-Month-High-Ahead-of-Key-U.S.-Jobs-Report/#13495286564042http://www.gold-bullion.org/bullion/spot-price-gold619/
Tue, 19 Jun 2012 13:54:31 -0700June 19, 2012 - The spot price of gold stayed in the $1,630 per troy ounce range Tuesday morning where it has hovered all week. Stocks and other commodities were mostly flat ahead of the US Federal Reserve’s Federal Open Markets Committee Meeting. The two- day policy-deciding meeting begins on Tuesday and concludes on Wednesday with an announcement on US monetary policy.

Investors wait for the announcement from the FOMC and from developments out of Europe. The exuberance from the pro-bailout Greek election has subsided and the Euro has fallen back against the dollar. In Spain, the costs of borrowing rose over 5 percent for one year, up from 1.985 percent last month.

Despite a relatively successful bond auction, there is concern over the Spanish bond auction that will take place on Thursday. The benchmark Spanish 10-year yields eased after the auction but have remained over 7 percent as of midday Tuesday. The auction on Thursday is widely seen as the next leg of the story.

“It is not at all clear whether Spain’s rescue package will help bring about the definitive clean-up of its banking sector,” said Nicholas Spiro, managing director of consultancy at Spiro Sovereign Strategy, a firm specializing in sovereign credit risk.

“Spaniards, like the markets, fear the 100 billion Euro credit line is the prelude to a full bailout accompanied by much stronger conditionality.”

Despite the concern in Europe, the policy-decision of the Federal Reserve will have a more immediate impact on the gold market.

“I guess there’s a kind of wait-and-see attitude because there’s a lot of uncertainty in the market,” said Lynette Tan, investment analyst at Philip Futures in Singapore. “We expect policy decisions from the Fed to influence the gold price more than risk appetite linked to the Euro crisis.”

Chief US Economist at Goldman Sachs, Jan Hatzius, said, “We would be quite surprised if we saw no [Fed policy] easing this week.”

Hatzius added, “We believe that an extension of Operation Twist could well be insufficient on its own and could thus be followed by additional easing action before long.” Hatzius also suggested that the Fed could consider a “sufficiently large program” of purchasing mortgage-backed securities.

]]>June 19, 2012 - The spot price of gold stayed in the $1,630 per troy ounce range Tuesday morning where it has hovered all week. Stocks and other commodities were mostly flat ahead of the US Federal Reserve’s Federal Open Markets Committee Meeting. The two- day policy-deciding meeting begins on Tuesday and concludes on Wednesday with an announcement on US monetary policy.

Investors wait for the announcement from the FOMC and from developments out of Europe. The exuberance from the pro-bailout Greek election has subsided and the Euro has fallen back against the dollar. In Spain, the costs of borrowing rose over 5 percent for one year, up from 1.985 percent last month.

Despite a relatively successful bond auction, there is concern over the Spanish bond auction that will take place on Thursday. The benchmark Spanish 10-year yields eased after the auction but have remained over 7 percent as of midday Tuesday. The auction on Thursday is widely seen as the next leg of the story.

“It is not at all clear whether Spain’s rescue package will help bring about the definitive clean-up of its banking sector,” said Nicholas Spiro, managing director of consultancy at Spiro Sovereign Strategy, a firm specializing in sovereign credit risk.

“Spaniards, like the markets, fear the 100 billion Euro credit line is the prelude to a full bailout accompanied by much stronger conditionality.”

Despite the concern in Europe, the policy-decision of the Federal Reserve will have a more immediate impact on the gold market.

“I guess there’s a kind of wait-and-see attitude because there’s a lot of uncertainty in the market,” said Lynette Tan, investment analyst at Philip Futures in Singapore. “We expect policy decisions from the Fed to influence the gold price more than risk appetite linked to the Euro crisis.”

Chief US Economist at Goldman Sachs, Jan Hatzius, said, “We would be quite surprised if we saw no [Fed policy] easing this week.”

Hatzius added, “We believe that an extension of Operation Twist could well be insufficient on its own and could thus be followed by additional easing action before long.” Hatzius also suggested that the Fed could consider a “sufficiently large program” of purchasing mortgage-backed securities.

]]>http://www.gold-bullion.org/bullion/spot-price-gold619/#13401392714041http://www.gold-bullion.org/bullion/goldbullion-economicdata/
Wed, 06 Jun 2012 15:22:42 -0700June 6, 2012 - Gold bullion is very strongly influenced right now by any economic data coming out of the United States as gold waits for the impetus and the consequence of monetary policy to further propel the price of gold higher in the future. The gold market has been experiencing a relative slump in the past few months as the market comes to grips with contradictory data coming from the United States.

Only a few months ago investors were looking at the February jobs report, which added 20,000 jobs to the US economy and taking it as a major indicator that we had indeed turned a corner and the United States economy was getting better. Now, in addition to the trouble coming out of the European Union, we are seeing much less promising jobs reports in addition to further troubling economic data.

The most recent and most troubling of these economic data points is the factory orders report which showed a decline where a gain was expected. New factory orders fell in April constituting the third decline in four months according to the Commerce Department. Orders for manufactured goods were down 0.6% on the month in April and March orders were revised downward.

At the same time, activity in the precious metals markets is following a slumping trend line. Gold bullion was down .84% during intraday trading on Monday, trading at just over $1600 per ounce with a morning high of $1623.10 an ounce. Silver lost a little more ground with a decrease of 1.81% and a spot price at $28.16 for Troy ounce. Price references for both precious metals were relatively unchanged from the previous week and the trend line showed a continuation of market dynamics as they were before massive devaluations in the euro caused a flight to the US dollar and a temporary surge in gold

Aside from the troubling economic data emerging in the US, there is the larger shadow of Europe on all American financial activities. The latest of which is a focus on Spain, which has admitted that it will need a bailout from the euro zone. Unemployment in Spain among the youth aged 18 to 25 is at 51% and the Mediterranean country, like Greece, has been experiencing political unrest in the form of full-blown riots. Greece, which has received its third bailout package from Germany, has indentured and indebted its populace through austerity measures until at least the year 2020, at which time the Greek governments project they will only have a 127% debt to GDP ratio.

The slowing economic data out of the United States, coupled with the overarching threat to the American economy from the euro zone crisis, will bring a renewed valuation to the precious metals markets, though it is difficult to indicate the time trends will take place with any degree of accuracy. It is fiscally logical that gold bullion will increase in value and spot price as these major market dynamics unfold and unwind.

]]>Gold bullion is very strongly influenced right now by any economic data coming out of the United States as gold waits for the impetus and the consequence of monetary policy to further propel the price of gold higher in the future. The gold market has been experiencing a relative slump in the past few months as the market comes to grips with contradictory data coming from the United States.

June 6, 2012 - Only a few months ago investors were looking at the February jobs report, which added 20,000 jobs to the US economy and taking it as a major indicator that we had indeed turned a corner and the United States economy was getting better. Now, in addition to the trouble coming out of the European Union, we are seeing much less promising jobs reports in addition to further troubling economic data.

The most recent and most troubling of these economic data points is the factory orders report which showed a decline where a gain was expected. New factory orders fell in April constituting the third decline in four months according to the Commerce Department. Orders for manufactured goods were down 0.6% on the month in April and March orders were revised downward.

At the same time, activity in the precious metals markets is following a slumping trend line. Gold bullion was down .84% during intraday trading on Monday, trading at just over $1600 per ounce with a morning high of $1623.10 an ounce. Silver lost a little more ground with a decrease of 1.81% and a spot price at $28.16 for Troy ounce. Price references for both precious metals were relatively unchanged from the previous week and the trend line showed a continuation of market dynamics as they were before massive devaluations in the euro caused a flight to the US dollar and a temporary surge in gold

Aside from the troubling economic data emerging in the US, there is the larger shadow of Europe on all American financial activities. The latest of which is a focus on Spain, which has admitted that it will need a bailout from the euro zone. Unemployment in Spain among the youth aged 18 to 25 is at 51% and the Mediterranean country, like Greece, has been experiencing political unrest in the form of full-blown riots. Greece, which has received its third bailout package from Germany, has indentured and indebted its populace through austerity measures until at least the year 2020, at which time the Greek governments project they will only have a 127% debt to GDP ratio.

The slowing economic data out of the United States, coupled with the overarching threat to the American economy from the euro zone crisis, will bring a renewed valuation to the precious metals markets, though it is difficult to indicate the time trends will take place with any degree of accuracy. It is fiscally logical that gold bullion will increase in value and spot price as these major market dynamics unfold and unwind.

]]>http://www.gold-bullion.org/bullion/goldbullion-economicdata/#13390213624040http://www.gold-bullion.org/bullion/goldbullion-correction/
Mon, 04 Jun 2012 12:19:40 -0700June 4, 2012 - Gold bullion is under a lot of pressure from both sides as it attempts to cope with the correctional stage that has brought gold 20% off recent highs and the influence of crisis in other markets, which is creating strong demand. The current demand is the kind of investor demand we saw at the beginning of the Greek sovereign debt crisis two years ago, now considered a veritable exodus to precious metals and tangible assets.

The recent US jobless report showed a dismal addition to the US economy of 69,000 jobs, per the monthly report from the US Bureau of Labor Statistics. Just three months ago, in February, 200,000 jobs were added to the US economy, which caused the optimism of the brought US financial stocks to eight-month highs.

The kind of numbers were seeing now from the US Bureau of Labor Statistics are enough to cause the strong negative sentiments about the future of the US economy and create an impetus to safe haven asset status inherent in gold bullion that sways the numbers.

It should be remembered that we are currently in a correctional stage for gold and all precious metals. Though we have recently seen 20% off from highs, it is not unusual in an 11-year bull market that has at times seem hundred 600% returns. Nor is there any reason to consider the correctional stage over, even though were having a strong increase in price, back over the $1600 per Troy ounce level, based on the surge in demand.

The real support for gold was around $1555 per troy ounce, but it may be some time before we see that level tested again. Particularly, if the situation in Europe gets worse there will be a further influence on the gold market. Gold above $1600 per troy ounce is a wonderful thing, but it is confusing if the investor involved doesn’t have a far eye looking at the overall trends of the gold market over many months.

There is every indication that there will be some type of further problem in Europe, though nobody really knows what, and until we see solid and concrete progress in the US economy it should be assumed that very little progress is being made. This is a logical and theoretical buying opportunity for gold, but the short term price dynamics may dissuade some people from the gold market, given its complexity. Regardless, gold bullion is coping with simultaneous and counteractive directional forces that will influence the market for some time.

]]>June 4, 2012 - Gold bullion is under a lot of pressure from both sides as it attempts to cope with the correctional stage that has brought gold 20% off recent highs and the influence of crisis in other markets, which is creating strong demand. The current demand is the kind of investor demand we saw at the beginning of the Greek sovereign debt crisis two years ago, now considered a veritable exodus to precious metals and tangible assets.

The recent US jobless report showed a dismal addition to the US economy of 69,000 jobs, per the monthly report from the US Bureau of Labor Statistics. Just three months ago, in February, 200,000 jobs were added to the US economy, which caused the optimism of the brought US financial stocks to eight-month highs.

The kind of numbers were seeing now from the US Bureau of Labor Statistics are enough to cause the strong negative sentiments about the future of the US economy and create an impetus to safe haven asset status inherent in gold bullion that sways the numbers.

It should be remembered that we are currently in a correctional stage for gold and all precious metals. Though we have recently seen 20% off from highs, it is not unusual in an 11-year bull market that has at times seem hundred 600% returns. Nor is there any reason to consider the correctional stage over, even though were having a strong increase in price, back over the $1600 per Troy ounce level, based on the surge in demand.

The real support for gold was around $1555 per troy ounce, but it may be some time before we see that level tested again. Particularly, if the situation in Europe gets worse there will be a further influence on the gold market. Gold above $1600 per troy ounce is a wonderful thing, but it is confusing if the investor involved doesn’t have a far eye looking at the overall trends of the gold market over many months.

There is every indication that there will be some type of further problem in Europe, though nobody really knows what, and until we see solid and concrete progress in the US economy it should be assumed that very little progress is being made. This is a logical and theoretical buying opportunity for gold, but the short term price dynamics may dissuade some people from the gold market, given its complexity. Regardless, gold bullion is coping with simultaneous and counteractive directional forces that will influence the market for some time.

]]>http://www.gold-bullion.org/bullion/goldbullion-correction/#13388375804039http://www.gold-bullion.org/bullion/investor-gold-bullion/
Fri, 01 Jun 2012 11:40:20 -0700June 1, 2012 - Leaving aside the many problems plaguing Europe for the moment, the most recent economic data out of the United States is troubling enough for investors to retake positions in gold bullion that is literally affecting the price during the most protracted correctional period we’ve experienced in some time.

The spot price of gold rose 3.2 percent during intraday trading, breaching the psychologically important $1600 per troy ounce level and reached as high as $1610.20 per troy ounce. In an intraday move 3 percent is significant in any commodity and it should serve as an indicator of the severity of the economic data that is arising now from the euro zone and also from the United States. Silver showed a 2.71 percent gain and is bidding again above the $28 dollar level, now at $28.46 an ounce.

The main reason given for this price moves, which are very significant in intraday trading, have to do with the recent jobs report released by the Bureau of Labor Statistics which places the job creation rate at the month of May at a stall pace. During the month of May only 69000 jobs were added to the US economy. This raise the unemployment rate to 8.2 percent, the first increase in unemployment in almost a year.

This is a far cry from the jobless report released in the month of February, which added 200,000 jobs to the US economy was largely regarded as a signal to both market participants and American workers that the US economy had turned a corner. We are now getting the kind of indication that is taken very seriously by investors that we have not turned any corners in the US economy and that we can expect difficult market conditions to persist in the future.

As such, gold and silver bullion are already performing well in the adverse economic conditions and promise to continue as the best hedge we have against the difficult markets. Gold bullion has been on a stunning streak the past three years particularly which coincides with the many problems both in the US economy and abroad and that trend should be reinforced by the current market difficulties.

]]>June 1, 2012 - Leaving aside the many problems plaguing Europe for the moment, the most recent economic data out of the United States is troubling enough for investors to retake positions in gold bullion that is literally affecting the price during the most protracted correctional period we’ve experienced in some time.

The spot price of gold rose 3.2 percent during intraday trading, breaching the psychologically important $1600 per troy ounce level and reached as high as $1610.20 per troy ounce. In an intraday move 3 percent is significant in any commodity and it should serve as an indicator of the severity of the economic data that is arising now from the euro zone and also from the United States. Silver showed a 2.71 percent gain and is bidding again above the $28 dollar level, now at $28.46 an ounce.

The main reason given for this price moves, which are very significant in intraday trading, have to do with the recent jobs report released by the Bureau of Labor Statistics which places the job creation rate at the month of May at a stall pace. During the month of May only 69000 jobs were added to the US economy. This raise the unemployment rate to 8.2 percent, the first increase in unemployment in almost a year.

This is a far cry from the jobless report released in the month of February, which added 200,000 jobs to the US economy was largely regarded as a signal to both market participants and American workers that the US economy had turned a corner. We are now getting the kind of indication that is taken very seriously by investors that we have not turned any corners in the US economy and that we can expect difficult market conditions to persist in the future.

As such, gold and silver bullion are already performing well in the adverse economic conditions and promise to continue as the best hedge we have against the difficult markets. Gold bullion has been on a stunning streak the past three years particularly which coincides with the many problems both in the US economy and abroad and that trend should be reinforced by the current market difficulties.

]]>http://www.gold-bullion.org/bullion/investor-gold-bullion/#13385760204038http://www.gold-bullion.org/bullion/gold-bullion-euro/
Wed, 30 May 2012 12:50:26 -0700May 30, 2012 - The Euro reached twenty-two month lows last week, which gave a rise to gold bullion that managed to keep it off its primary correctional trajectory. There is no guarantee that the current action in its total will keep the gold market back on track for immediate gains and away from the strong fundamentals that ensure a correction in gold, but there is a strong indication that further problems out of the European Union will bring action to the gold market.

Gold has been relatively unpopular in the first quarter of 2012 as investors read somewhat optimistic economic news and pulled money from gold bullion in order to pursue riskier positions. Economic data including House Sales and the Jobless report have given many investors all the news they need in order to believe that a recovery is in effect and is bankable in terms of investments.

Lately, gold has cooled, somewhat, with gold falling by 1.3 percent last week despite a rise on Thursday and Friday. Silver was also down on the week and gold and silver ETF’s were also down.

Now, the news of the Greek exit from the European Union is bringing renewed interest to gold bullion as the currency, the Euro, is suffering at twenty-two month lows as investors front run a serious European problem. The action in the Euro already has been enough to reactivate interest in gold, though there has been nothing but news and hype out of the European Union. An actual market event, such as a Greek exit, will cause significant disruption in the market and that is enough to scare investors to take positions with gold now before such action is possible.

Gold is still in an overall bull market that is experiencing a correction, which will fundamentally hold true through this crisis. The troubles in the Euro, however, are enough to overshadow that dynamic. These many factors will continue to influence the gold market through the short term, which can be relatively tradable understanding.

However, in the event of a Greek exit from the Eurozone, there will be far greater market disruption that simply cannot and should not be projected at this time. Certainly, gold is one of the safest places to be in such a market event scenario, which is one of the best reasons why investors are flocking to gold bullion now and front-running the European problem.

]]>May 30, 2012 - The Euro reached twenty-two month lows last week, which gave a rise to gold bullion that managed to keep it off its primary correctional trajectory. There is no guarantee that the current action in its total will keep the gold market back on track for immediate gains and away from the strong fundamentals that ensure a correction in gold, but there is a strong indication that further problems out of the European Union will bring action to the gold market.

Gold has been relatively unpopular in the first quarter of 2012 as investors read somewhat optimistic economic news and pulled money from gold bullion in order to pursue riskier positions. Economic data including House Sales and the Jobless report have given many investors all the news they need in order to believe that a recovery is in effect and is bankable in terms of investments.

Lately, gold has cooled, somewhat, with gold falling by 1.3 percent last week despite a rise on Thursday and Friday. Silver was also down on the week and gold and silver ETF’s were also down.

Now, the news of the Greek exit from the European Union is bringing renewed interest to gold bullion as the currency, the Euro, is suffering at twenty-two month lows as investors front run a serious European problem. The action in the Euro already has been enough to reactivate interest in gold, though there has been nothing but news and hype out of the European Union. An actual market event, such as a Greek exit, will cause significant disruption in the market and that is enough to scare investors to take positions with gold now before such action is possible.

Gold is still in an overall bull market that is experiencing a correction, which will fundamentally hold true through this crisis. The troubles in the Euro, however, are enough to overshadow that dynamic. These many factors will continue to influence the gold market through the short term, which can be relatively tradable understanding.

However, in the event of a Greek exit from the Eurozone, there will be far greater market disruption that simply cannot and should not be projected at this time. Certainly, gold is one of the safest places to be in such a market event scenario, which is one of the best reasons why investors are flocking to gold bullion now and front-running the European problem.

]]>http://www.gold-bullion.org/bullion/gold-bullion-euro/#13384074264037http://www.gold-bullion.org/bullion/goldsilver-jpmorgan/
Wed, 23 May 2012 14:17:51 -0700May 23, 2012 - Less than nine months after the very serious bankruptcy at MF Global, yet another major American bank has engaged in overly risky trading that has led to major losses and highlights the need for investors to take their money out of the reach of banks and put it into gold and silver.

Gold fell more than 2 percent after a US home sales report brought better than expected news to the markets and signaled a sell-off. Prices in gold were as low as $1,534.25 per troy ounce, or 2.15 percent decline. This is generally in line with the correction in the gold market that will bring the prices lower, making gold more affordable.

The more affordable prices in gold are perfect timing for the current fracas at JP Morgan. The too-big-to-fail bank headed by the notorious Jamie Dimon has made a bad bet in the derivatives market, which is the absolute antithesis of gold. Derivatives have no underlying or intrinsic value whatsoever and are thus “derivative” of value. Because of this dynamic, there can be more derivatives in existence than we can possibly buy, sell, or trade, and this makes them extraordinarily hazardous to the global economy.

There are an estimated $707 trillion derivatives in existence as of the first quarter of 2012, which is only the Gross Domestic Product of the entire planet for 11.2 years. This is extraordinarily disproportionate to the market and a great threat.

Dimon’s bank must deal regularly in derivatives in order to achieve returns in the current environment, and clearly he isn’t hedging the bets with gold bullion. Banks are being forced to make these risky bets in order to chase diminishing returns that under typical market circumstances shouldn’t be better than when the economy was healthy and functioning.

What was $2 billion loss by JP Morgan is now being reporting The Independent as closer to $7 billion, which would be in line with bank losses at MF Global where less than half of the ultimate loss was originally reported.

Gold bullion is the only way out of this banking mess. It takes your money out of the reach bankers, particularly if you hold the bullion yourself, and it takes power away from bankers who can’t help but hurt. Gold bullion is the way forward.

]]>May 23, 2012 - Less than nine months after the very serious bankruptcy at MF Global, yet another major American bank has engaged in overly risky trading that has led to major losses and highlights the need for investors to take their money out of the reach of banks and put it into gold and silver.

Gold fell more than 2 percent after a US home sales report brought better than expected news to the markets and signaled a sell-off. Prices in gold were as low as $1,534.25 per troy ounce, or 2.15 percent decline. This is generally in line with the correction in the gold market that will bring the prices lower, making gold more affordable.

The more affordable prices in gold are perfect timing for the current fracas at JP Morgan. The too-big-to-fail bank headed by the notorious Jamie Dimon has made a bad bet in the derivatives market, which is the absolute antithesis of gold. Derivatives have no underlying or intrinsic value whatsoever and are thus “derivative” of value. Because of this dynamic, there can be more derivatives in existence than we can possibly buy, sell, or trade, and this makes them extraordinarily hazardous to the global economy.

There are an estimated $707 trillion derivatives in existence as of the first quarter of 2012, which is only the Gross Domestic Product of the entire planet for 11.2 years. This is extraordinarily disproportionate to the market and a great threat.

Dimon’s bank must deal regularly in derivatives in order to achieve returns in the current environment, and clearly he isn’t hedging the bets with gold bullion. Banks are being forced to make these risky bets in order to chase diminishing returns that under typical market circumstances shouldn’t be better than when the economy was healthy and functioning.

What was $2 billion loss by JP Morgan is now being reporting The Independent as closer to $7 billion, which would be in line with bank losses at MF Global where less than half of the ultimate loss was originally reported.

Gold bullion is the only way out of this banking mess. It takes your money out of the reach bankers, particularly if you hold the bullion yourself, and it takes power away from bankers who can’t help but hurt. Gold bullion is the way forward.

]]>http://www.gold-bullion.org/bullion/goldsilver-jpmorgan/#13378078714035http://www.gold-bullion.org/bullion/goldbullion-spotprice/
Mon, 21 May 2012 13:12:10 -0700May 21, 2012 - Gold bullion is enjoying a slight surge in spot price that some analysts and investors are seeing as a turnaround in the market. This is despite a strong signal that the correction is in full force and may in fact herald a round of Quantitative Easing. Last week gold rose 0.5 percent per troy ounce and silver rose 0.61 percent per troy ounce, but the correction will continue.

QE, or Quantitative Easing, is the Federal Reserve’s solution to economic instability in markets and consists of the injection of several billion, perhaps trillion, dollars into markets partially through the purchase of bonds. Essentially, what Quantitative Easing does is bolster the buying demand in some markets while prices in others in order to make things look and feel good enough for a limited time to stave off worse economic consequences.

There has been a major correlation between Quantitative Easing programs and the prices of gold bullion, which is readily observable during the last five years. With each successive round of stimulus, the price of gold bullion has grown and risen higher. This, partially, has made gold the trade of the last decade. At times, gold has realized a 600 percent return, making it the best performing asset in its class as well as the best investment in some time frames.

Because Quantitative Easing increases the money supply, it necessarily floats the price of gold higher because each time you increase the number of dollars in circulation you increase the number of dollars it takes to purchase an ounce of gold. Each time there has been a round of Quantitative Easing, the price of gold has risen dramatically higher.

Given the current correctional phase in gold, we may be looking directly at a scenario in which the price of gold could skyrocket perhaps even higher than the all-time nominal record in price achieved on September 6, 2011 at $1,923 per troy ounce.

Many key factors will determine whether Quantitative Easing will take place in the near future. To be attended to this week are the US Housing Starts, Housing Sales, and the Jobless Report will which be emerging around mid-week. These will have a short-term effect on the price of gold, but will certainly contribute a great deal to the overall atmosphere.

Gold bullion will continue its correctional movements making gold one of the more interesting investments currently available but also signaling that a round of Quantitative Easing may be in our direct future.

]]>May 21, 2012 - Gold bullion is enjoying a slight surge in spot price that some analysts and investors are seeing as a turnaround in the market. This is despite a strong signal that the correction is in full force and may in fact herald a round of Quantitative Easing. Last week gold rose 0.5 percent per troy ounce and silver rose 0.61 percent per troy ounce, but the correction will continue.

QE, or Quantitative Easing, is the Federal Reserve’s solution to economic instability in markets and consists of the injection of several billion, perhaps trillion, dollars into markets partially through the purchase of bonds. Essentially, what Quantitative Easing does is bolster the buying demand in some markets while prices in others in order to make things look and feel good enough for a limited time to stave off worse economic consequences.

There has been a major correlation between Quantitative Easing programs and the prices of gold bullion, which is readily observable during the last five years. With each successive round of stimulus, the price of gold bullion has grown and risen higher. This, partially, has made gold the trade of the last decade. At times, gold has realized a 600 percent return, making it the best performing asset in its class as well as the best investment in some time frames.

Because Quantitative Easing increases the money supply, it necessarily floats the price of gold higher because each time you increase the number of dollars in circulation you increase the number of dollars it takes to purchase an ounce of gold. Each time there has been a round of Quantitative Easing, the price of gold has risen dramatically higher.

Given the current correctional phase in gold, we may be looking directly at a scenario in which the price of gold could skyrocket perhaps even higher than the all-time nominal record in price achieved on September 6, 2011 at $1,923 per troy ounce.

Many key factors will determine whether Quantitative Easing will take place in the near future. To be attended to this week are the US Housing Starts, Housing Sales, and the Jobless Report will which be emerging around mid-week. These will have a short-term effect on the price of gold, but will certainly contribute a great deal to the overall atmosphere.

Gold bullion will continue its correctional movements making gold one of the more interesting investments currently available but also signaling that a round of Quantitative Easing may be in our direct future.

]]>http://www.gold-bullion.org/bullion/goldbullion-spotprice/#13376311304034http://www.gold-bullion.org/bullion/market-goldbullion/
Fri, 18 May 2012 14:53:56 -0700May 18, 2012 - Overseas markets account for a considerable amount of the demand in the market for gold bullion, and after a brief reprieve these markets are again heating up in time to make the coming months very interesting for gold. This necessarily affects and impacts the US gold market, particularly because the United States is not the biggest market for gold in the world.

The biggest market for gold in the world is actually India, which has a societal relationship with gold spanning many thousands of years. Traditionally in India, wealth is stored in the form of gold, which is transferred upon both marriage and death in the form of jewelry. This makes India, which has over a billion citizens, the strongest and biggest gold market on the face of the planet.

Recently, increases in particular tariffs and taxes have brought the demand for gold down as India sought to make it more difficult to import gold and store gold in an effort to boost the economy. This has undoubtedly had an effect on the US gold market and will continue to do so.

However, one of the biggest trends in gold right now consists of an increase in gold bullion buying in China. Wealth, again, is stored in the form of gold in China traditionally, but Chinese workers are facing a scenario in which they have much more disposable income and they are poised to spend it on gold bullion.

Gold demand in China may surge as much as 30 percent this coming year, which will provide the boost China needs to overtake India as the world’s premiere gold market. Gold demand may rise to between 900 metric tons and 1,000 tons this year from 769.8 tons in 2011. This kind of significant increase in volume will certainly affect the US gold market, even as India drops from 900 tons to 800 tons.

The demand in gold is a major deterministic portion of the gold price, which is a dynamic we have seen at work over the past month and more. Demand overseas as well as domestically has simply dropped, which has caused a commensurate drop in prices. However, demand will again be rising, particularly in China where there is a larger amount of disposable income and the value of gold is socially and historically appreciated. The demand from Asia will eventually creep into American markets and drive the price of gold bullion higher.

]]>May 18, 2012 - Overseas markets account for a considerable amount of the demand in the market for gold bullion, and after a brief reprieve these markets are again heating up in time to make the coming months very interesting for gold. This necessarily affects and impacts the US gold market, particularly because the United States is not the biggest market for gold in the world.

The biggest market for gold in the world is actually India, which has a societal relationship with gold spanning many thousands of years. Traditionally in India, wealth is stored in the form of gold, which is transferred upon both marriage and death in the form of jewelry. This makes India, which has over a billion citizens, the strongest and biggest gold market on the face of the planet.

Recently, increases in particular tariffs and taxes have brought the demand for gold down as India sought to make it more difficult to import gold and store gold in an effort to boost the economy. This has undoubtedly had an effect on the US gold market and will continue to do so.

However, one of the biggest trends in gold right now consists of an increase in gold bullion buying in China. Wealth, again, is stored in the form of gold in China traditionally, but Chinese workers are facing a scenario in which they have much more disposable income and they are poised to spend it on gold bullion.

Gold demand in China may surge as much as 30 percent this coming year, which will provide the boost China needs to overtake India as the world’s premiere gold market. Gold demand may rise to between 900 metric tons and 1,000 tons this year from 769.8 tons in 2011. This kind of significant increase in volume will certainly affect the US gold market, even as India drops from 900 tons to 800 tons.

The demand in gold is a major deterministic portion of the gold price, which is a dynamic we have seen at work over the past month and more. Demand overseas as well as domestically has simply dropped, which has caused a commensurate drop in prices. However, demand will again be rising, particularly in China where there is a larger amount of disposable income and the value of gold is socially and historically appreciated. The demand from Asia will eventually creep into American markets and drive the price of gold bullion higher.

]]>http://www.gold-bullion.org/bullion/market-goldbullion/#13373780364033http://www.gold-bullion.org/bullion/gold-bullion-correction/
Wed, 16 May 2012 15:06:45 -0700May 16, 2012 - We are in a strong correctional phase for gold that has put some bullion buyers temporarily off the market as they seek to wait and see how long and deep the correction will be. Gold is down again by 0.25 percent, closing at $1,557 per troy ounce on Tuesday. This continuing downward trend brings gold to a 6.44 percent depreciation for the month. With gold hovering just above, we can expect a breach of the $1,550 level, at which we will then be looking for support around $1,533.

Corrections are normal parts of any market, but the current correction may be slightly protracted as gold has been on such an extended bull run for over a decade now. Still, at the current time, there are some major names either buying gold or increasing their positions in gold that warrant consideration.

George Soros, head of Soros Fund Management, nearly quadrupled his investment in gold in the first quarter of the year. The legendary investor who broke the Bank of England certainly has a feeling of the pulse of finance. Additionally, PIMCO, the world’s largest investor in bonds has been buying gold in the first quarter. Bill Gross, the head at PIMCO, had to write some rather apologetic client letters in the past year, but it appears he is turning the tables on that position at this current time. Additionally, John Paulson, who became a billionaire in 2007 by betting against the subprime mortgage market has been buying gold.

These significant positions in gold bullion are important considerations when thinking of the market for gold and where it will be in the mid-term future. The fundamentals of the strong bull market in gold are still in effect, even if we experience so much as a 35 to 40 percent correction in gold.

For such a protracted bull market, that amount of correction would not be unusual. However, it is important to remember that the big names in finance, those that have generally done well in the past, are still scooping up gold at voluminous rates. This is the best indication you can have on a street level that the gold market is going to be going very interesting places over the coming months.

]]>May 16, 2012 - We are in a strong correctional phase for gold that has put some bullion buyers temporarily off the market as they seek to wait and see how long and deep the correction will be. Gold is down again by 0.25 percent, closing at $1,557 per troy ounce on Tuesday. This continuing downward trend brings gold to a 6.44 percent depreciation for the month. With gold hovering just above, we can expect a breach of the $1,550 level, at which we will then be looking for support around $1,533.

Corrections are normal parts of any market, but the current correction may be slightly protracted as gold has been on such an extended bull run for over a decade now. Still, at the current time, there are some major names either buying gold or increasing their positions in gold that warrant consideration.

George Soros, head of Soros Fund Management, nearly quadrupled his investment in gold in the first quarter of the year. The legendary investor who broke the Bank of England certainly has a feeling of the pulse of finance. Additionally, PIMCO, the world’s largest investor in bonds has been buying gold in the first quarter. Bill Gross, the head at PIMCO, had to write some rather apologetic client letters in the past year, but it appears he is turning the tables on that position at this current time. Additionally, John Paulson, who became a billionaire in 2007 by betting against the subprime mortgage market has been buying gold.

These significant positions in gold bullion are important considerations when thinking of the market for gold and where it will be in the mid-term future. The fundamentals of the strong bull market in gold are still in effect, even if we experience so much as a 35 to 40 percent correction in gold.

For such a protracted bull market, that amount of correction would not be unusual. However, it is important to remember that the big names in finance, those that have generally done well in the past, are still scooping up gold at voluminous rates. This is the best indication you can have on a street level that the gold market is going to be going very interesting places over the coming months.

]]>http://www.gold-bullion.org/bullion/gold-bullion-correction/#13372060054032http://www.gold-bullion.org/bullion/gold-bullion-jpmorgan/
Mon, 14 May 2012 15:05:00 -0700May 14, 2012 - JP Morgan should have hedged its most recent untenable position with gold bullion, which would have limited the investment banks exposure and minimized the risk. The major investment bank, which enjoyed billions of dollars in taxpayer bailouts, recently took positions that are questionable in regards to its behavior in the American marketplace. In retrospect, the company should have had better positions in gold bullion to reduce the trouble. In looking forward, the JP Morgan debacle will lend strength and support to gold bullion as the soundest form of investment and money in the current market environment.

Essentially, what JP Morgan did was underestimate the amount of money it needed to operate responsibly in the current market environment. The estimated cost of this bad estimate is currently at $2 billion. That’s a lot of money to lose when the bank in question received billions of dollars in taxpayer money less than five years ago.

The only public responsibility JP Morgan is showing is via a round of damage control by the CEO, Jamie Dimon, who is make the press with semi-apologies and vague descriptions. It is apparent in the American marketplace that investment banks can’t be trusted with their own client’s money, particularly after the MF Global debacle of October 2011.

Just over six months ago, MF Global, a 200-year-old American institution went bankrupt after it used its own customer’s money in a multi-million dollar bad bet on European debt. $1.2 billion of customer money went missing at that time, about 60 percent of which has been located and repaid.

Gold bullion may be the most responsible reaction to the current market environment because it is the most effective method of removing the money from the reach of these banks who cannot seem to use it appropriately. In the current market environment, it is difficult for these banks to achieve the kind of profits they require without stripping down and each trade and assuming the kind of risk that no bank should responsibly. Even though they can hedge their risks with gold bullion, JP Morgan may not have done so in this particular trade in order to keep costs low.

The lesson belongs both to JP Morgan and to the American market. Gold bullion is a necessity in this market environment as a hedge against risk and its necessary implications.

]]>May 14, 2012 - JP Morgan should have hedged its most recent untenable position with gold bullion, which would have limited the investment banks exposure and minimized the risk. The major investment bank, which enjoyed billions of dollars in taxpayer bailouts, recently took positions that are questionable in regards to its behavior in the American marketplace. In retrospect, the company should have had better positions in gold bullion to reduce the trouble. In looking forward, the JP Morgan debacle will lend strength and support to gold bullion as the soundest form of investment and money in the current market environment.

Essentially, what JP Morgan did was underestimate the amount of money it needed to operate responsibly in the current market environment. The estimated cost of this bad estimate is currently at $2 billion. That’s a lot of money to lose when the bank in question received billions of dollars in taxpayer money less than five years ago.

The only public responsibility JP Morgan is showing is via a round of damage control by the CEO, Jamie Dimon, who is make the press with semi-apologies and vague descriptions. It is apparent in the American marketplace that investment banks can’t be trusted with their own client’s money, particularly after the MF Global debacle of October 2011.

Just over six months ago, MF Global, a 200-year-old American institution went bankrupt after it used its own customer’s money in a multi-million dollar bad bet on European debt. $1.2 billion of customer money went missing at that time, about 60 percent of which has been located and repaid.

Gold bullion may be the most responsible reaction to the current market environment because it is the most effective method of removing the money from the reach of these banks who cannot seem to use it appropriately. In the current market environment, it is difficult for these banks to achieve the kind of profits they require without stripping down and each trade and assuming the kind of risk that no bank should responsibly. Even though they can hedge their risks with gold bullion, JP Morgan may not have done so in this particular trade in order to keep costs low.

The lesson belongs both to JP Morgan and to the American market. Gold bullion is a necessity in this market environment as a hedge against risk and its necessary implications.

]]>http://www.gold-bullion.org/bullion/gold-bullion-jpmorgan/#13370331004031http://www.gold-bullion.org/bullion/goldbullion-billgates-warrenbuffett/
Fri, 11 May 2012 13:38:16 -0700May 11, 2012 - There are few people speaking out against gold bullion these days as it has been the best performing asset of any class for the past ten years, but Warren Buffett and Bill Gates still are. Only a few short years ago, gold was considered a risky trade with many potential troubles. After the financial crisis of 2008, views changed significantly, though not all at once.

In the past three years specifically, especially since the onset of the effect of US Federal Reserve’s fiscal stimulus plans, the price of gold bullion has skyrocketed, veritably in tandem with the rise of the amount of stimulus in the system.

The stimulus we have observing consists of the injection of billions upon billions of dollars, which necessarily dilute the money supply. As a side-effect, the price of gold skyrockets because it is a real asset with meaning.

Bill Gates and Warren Buffet, famously, have spoken out against gold recently, become the latest and perhaps the most powerful of American businessmen to the bash the metal. George Soros spoke out against gold, even while his firm was buying it, and well-known trader Dennis Gartman issued a public apology after he incorrectly called the market a bubble during the last correction.

What is most interesting to note is that both Bill Gates and Warren Buffet missed the gold trade as it began ten years ago. Granted, their companies involve them in very different sectors, but they are investors on top of the American economy. It is startling to think they could have missed the trade and missed the trend in gold bullion.

Bill Gates said “Gold is a tough one because it is so psychological.” While that is true, that does not make it a bad investment. Particularly if there is a very psychological aspect, in the current market environment that makes gold a very impressive investment.

Gold is unquestionably the trade of the last ten years, and though we are currently in a correction, it promises to continue on that path for the foreseeable future, despite what Bill Gates or Warren Buffet claim. Gold bullion will continue its major bull market following the current dip.

]]>May 11, 2012 - There are few people speaking out against gold bullion these days as it has been the best performing asset of any class for the past ten years, but Warren Buffett and Bill Gates still are. Only a few short years ago, gold was considered a risky trade with many potential troubles. After the financial crisis of 2008, views changed significantly, though not all at once.

In the past three years specifically, especially since the onset of the effect of US Federal Reserve’s fiscal stimulus plans, the price of gold bullion has skyrocketed, veritably in tandem with the rise of the amount of stimulus in the system.

The stimulus we have observing consists of the injection of billions upon billions of dollars, which necessarily dilute the money supply. As a side-effect, the price of gold skyrockets because it is a real asset with meaning.

Bill Gates and Warren Buffet, famously, have spoken out against gold recently, become the latest and perhaps the most powerful of American businessmen to the bash the metal. George Soros spoke out against gold, even while his firm was buying it, and well-known trader Dennis Gartman issued a public apology after he incorrectly called the market a bubble during the last correction.

What is most interesting to note is that both Bill Gates and Warren Buffet missed the gold trade as it began ten years ago. Granted, their companies involve them in very different sectors, but they are investors on top of the American economy. It is startling to think they could have missed the trade and missed the trend in gold bullion.

Bill Gates said “Gold is a tough one because it is so psychological.” While that is true, that does not make it a bad investment. Particularly if there is a very psychological aspect, in the current market environment that makes gold a very impressive investment.

Gold is unquestionably the trade of the last ten years, and though we are currently in a correction, it promises to continue on that path for the foreseeable future, despite what Bill Gates or Warren Buffet claim. Gold bullion will continue its major bull market following the current dip.

]]>http://www.gold-bullion.org/bullion/goldbullion-billgates-warrenbuffett/#13367686964030http://www.gold-bullion.org/bullion/goldprice-phase/
Wed, 09 May 2012 14:43:26 -0700May 9, 2012 - The movement in the market this week consists of a long overdue correctional phase in gold coin prices that will continue through to a consolidation period before moving higher in the continuation of the long-term bull market. Gold has been in a bull market for ten years now, which means a relatively serious correction is overdue, particularly since the major price increases of the past three years have added so much value and fervor to the gold market.

There are going to be many market analysts in the next week who will probably misunderstand the current correctional period and proclaim the bull market in gold to be over. This has happened at varying intervals in the market over the past year. After spectacularly incorrect projections last fall and winter, during our two major last correctional periods, the gold bears have been relatively quiet.

Indeed, the movement in trading of $45 per troy ounce, and crossing the psychologically important $1,600 price line will spook many traders, particularly those who had significant positions in the market without understand the long term health of the market. Any call to the end of the bull market would be, however, incorrect, as market fundamentals still place gold coin prices higher by the end of the year.

In a decade long bull market, there need to be correctional phases to even out the market and to continue on the market trend safely. Any straight move up in a market is unhealthy, to put it another way. The current move downward was both foreseen and projected by veteran investors and traders are simply playing the move.

For holders of physical, which we all should be, this move represents a buying opportunity near the low. China is already buying again after a period of quiescence, continuing the trend of Asian buying on the dip. American investors will begin buying when a clear bottom is more firmly established and they will ride the gold price to the top.

The market is fundamentally healthy as today’s action represents more of a market dynamic event and a psychologically significant event both in the gold market and in investors. Psychology is fundamentally important in markets and the spook that we will see in the gold market over the coming week and more will be a witness to that fact.

Correctional periods are signs of a healthy market, however, and we are on track to see the price of gold coins consolidate and move much higher over the coming half year.

]]>May 9, 2012 - The movement in the market this week consists of a long overdue correctional phase in gold coin prices that will continue through to a consolidation period before moving higher in the continuation of the long-term bull market. Gold has been in a bull market for ten years now, which means a relatively serious correction is overdue, particularly since the major price increases of the past three years have added so much value and fervor to the gold market.

There are going to be many market analysts in the next week who will probably misunderstand the current correctional period and proclaim the bull market in gold to be over. This has happened at varying intervals in the market over the past year. After spectacularly incorrect projections last fall and winter, during our two major last correctional periods, the gold bears have been relatively quiet.

Indeed, the movement in trading of $45 per troy ounce, and crossing the psychologically important $1,600 price line will spook many traders, particularly those who had significant positions in the market without understand the long term health of the market. Any call to the end of the bull market would be, however, incorrect, as market fundamentals still place gold coin prices higher by the end of the year.

In a decade long bull market, there need to be correctional phases to even out the market and to continue on the market trend safely. Any straight move up in a market is unhealthy, to put it another way. The current move downward was both foreseen and projected by veteran investors and traders are simply playing the move.

For holders of physical, which we all should be, this move represents a buying opportunity near the low. China is already buying again after a period of quiescence, continuing the trend of Asian buying on the dip. American investors will begin buying when a clear bottom is more firmly established and they will ride the gold price to the top.

The market is fundamentally healthy as today’s action represents more of a market dynamic event and a psychologically significant event both in the gold market and in investors. Psychology is fundamentally important in markets and the spook that we will see in the gold market over the coming week and more will be a witness to that fact.

Correctional periods are signs of a healthy market, however, and we are on track to see the price of gold coins consolidate and move much higher over the coming half year.

]]>http://www.gold-bullion.org/bullion/goldprice-phase/#13365998064029http://www.gold-bullion.org/bullion/buy-bullion-safehaven/
Mon, 07 May 2012 12:41:35 -0700May 7, 2012 - Gold bullion has been suffering a drop off in demand that has mostly been fueled by anticipation of better economic conditions. The drop off in demand for gold is mainly a lack of panic buying and safe haven asset buying. Safe haven asset buying occurs when there is indication of major political instability that will affect financial markets. The elections of the past weekend in Greece and France have demonstrated a popular sentiment against the austerity measures of the European Monetary Union. The immediate drop in the Euro is a very good result of that sentiment and it is affecting the price of gold bullion.

We have seen panic buying and safe haven asset buying on a scale not seen in multiple decades during the past two years. The financial crisis in the United States began a major trend of hedging against personal risk, but after the bailouts beginning in 2008, financial problems in other countries have been the major panic button for gold buyers seeking a safe haven in the global financial storm.

It is this safe haven asset buying and panic buying in gold that has partially helped to propel the price to an all-time nominal high in the past nine months. This all-time high coincided with the Greek bailout crisis, specifically the time when no one was sure the country wouldn’t default.

The austerity measures put in place to ensure the avoidance of that default are vastly unpopular. The recent elections in both France and Greece demonstrate that dynamic very well. The public is growing increasingly anti-austerity and anti-bailout and this weekend the French voted the President and the Greeks gave less than a third of the popular vote to the party responsible for the bailouts.

Immediately in currency trading, the Euro fell 45 pips against the dollar, which is extremely significant in terms of a starting session. This is an indication as to how financial markets are responding to the political changes occurring in Europe.

With the Euro falling so far on political change, the dollar is strengthened in currency markets and is thus bringing down the relative price of gold. Gold priced in a relatively stronger dollar will balance, however. We can anticipate the rebalancing as well as increased demand in gold bullion.

]]>May 7, 2012 - Gold bullion has been suffering a drop off in demand that has mostly been fueled by anticipation of better economic conditions. The drop off in demand for gold is mainly a lack of panic buying and safe haven asset buying. Safe haven asset buying occurs when there is indication of major political instability that will affect financial markets. The elections of the past weekend in Greece and France have demonstrated a popular sentiment against the austerity measures of the European Monetary Union. The immediate drop in the Euro is a very good result of that sentiment and it is affecting the price of gold bullion.

We have seen panic buying and safe haven asset buying on a scale not seen in multiple decades during the past two years. The financial crisis in the United States began a major trend of hedging against personal risk, but after the bailouts beginning in 2008, financial problems in other countries have been the major panic button for gold buyers seeking a safe haven in the global financial storm.

It is this safe haven asset buying and panic buying in gold that has partially helped to propel the price to an all-time nominal high in the past nine months. This all-time high coincided with the Greek bailout crisis, specifically the time when no one was sure the country wouldn’t default.

The austerity measures put in place to ensure the avoidance of that default are vastly unpopular. The recent elections in both France and Greece demonstrate that dynamic very well. The public is growing increasingly anti-austerity and anti-bailout and this weekend the French voted the President and the Greeks gave less than a third of the popular vote to the party responsible for the bailouts.

Immediately in currency trading, the Euro fell 45 pips against the dollar, which is extremely significant in terms of a starting session. This is an indication as to how financial markets are responding to the political changes occurring in Europe.

With the Euro falling so far on political change, the dollar is strengthened in currency markets and is thus bringing down the relative price of gold. Gold priced in a relatively stronger dollar will balance, however. We can anticipate the rebalancing as well as increased demand in gold bullion.

]]>http://www.gold-bullion.org/bullion/buy-bullion-safehaven/#13364196954028http://www.gold-bullion.org/bullion//
Fri, 04 May 2012 16:02:12 -0700There is only one real way to characterize the gold market and the trade in gold bullion over the past three months: sluggish. We have mostly been experiencing a sideways market with little to no action or growth. This is somewhat concerning for the hottest market of the past three years at least, which gold on an eleven-year bull run and realizing 600 percent returns in that time.

This is far from a dent in the gold market, which is so fundamentally strong that the current malaise almost makes no sense. Investors should be snatching up gold bullion at record highs, like central banks across the world have been doing for almost a year. In the third quarter of 2011 and the first quarter of 2012, per a report from the World Gold Council, central banks bought gold at 40-year highs. We haven’t been buying this much gold since President Nixon took the US Dollar off the gold standard, which ought to indicate a few things.

So why is the market so lazy? It’s as though we’ve been on summer for the past three months when we have been coming out of the toughest winter we’ve seen as country. For one, the perception that the economy is getting better has been drawing investors away from gold as a hedge on other positions. The proposition of making better money elsewhere has led many on the Street to riskier instruments, which they’re probably a little worried about as of the news today.

The drop in demand accounts for the 1.9 percent drop in gold on the week, which is substantive but not really considerable in the market. The real question is how long will this slow market last and how low will gold bullion go?

Nobody can be sure and anybody who makes a prediction will likely be wrong. We know two very important things about the gold market right now. One is that the fundamentals are strong and will continue to be so for the next 24 months. Any variance in the gold price in that time is dependent upon other factors. The other is that demand is very low right now, and could remain so for a while.

When it turns, it will probably do so rapidly and possibly violently, depending upon the catalyst. It is the nature of the market in gold bullion.
]]>

There is only one real way to characterize the gold market and the trade in gold bullion over the past three months: sluggish. We have mostly been experiencing a sideways market with little to no action or growth. This is somewhat concerning for the hottest market of the past three years at least, which gold on an eleven-year bull run and realizing 600 percent returns in that time.

This is far from a dent in the gold market, which is so fundamentally strong that the current malaise almost makes no sense. Investors should be snatching up gold bullion at record highs, like central banks across the world have been doing for almost a year. In the third quarter of 2011 and the first quarter of 2012, per a report from the World Gold Council, central banks bought gold at 40-year highs. We haven’t been buying this much gold since President Nixon took the US Dollar off the gold standard, which ought to indicate a few things.

So why is the market so lazy? It’s as though we’ve been on summer for the past three months when we have been coming out of the toughest winter we’ve seen as country. For one, the perception that the economy is getting better has been drawing investors away from gold as a hedge on other positions. The proposition of making better money elsewhere has led many on the Street to riskier instruments, which they’re probably a little worried about as of the news today.

The drop in demand accounts for the 1.9 percent drop in gold on the week, which is substantive but not really considerable in the market. The real question is how long will this slow market last and how low will gold bullion go?

Nobody can be sure and anybody who makes a prediction will likely be wrong. We know two very important things about the gold market right now. One is that the fundamentals are strong and will continue to be so for the next 24 months. Any variance in the gold price in that time is dependent upon other factors. The other is that demand is very low right now, and could remain so for a while.

When it turns, it will probably do so rapidly and possibly violently, depending upon the catalyst. It is the nature of the market in gold bullion.]]>

http://www.gold-bullion.org/bullion//#13361725324027http://www.gold-bullion.org/bullion/ericsprott-goldbullion/
Mon, 30 Apr 2012 14:19:17 -0700April 30, 2012 - Eric Sprott, the Canadian billionaire investor, is perhaps more known for his massive purchase of silver bullion than his work with gold bullion. However, as an investor with his ear close to the market, and being just far enough away to see the situation clearly, Sprott’s perspective on the current gold market and the future of precious metals is highly relevant.

A recent publication put out by Sprott Asset Management declares that, “when fundamentals no longer apply, review the fundamentals.” An interesting take on a reference to Ayn Rand, the tactic is certainly useful for making inferences about the economy in general.

Sprott declares they have not seen US recovery. This puts gold bullion and silver very high on the to buy list as they will inevitably increase in value as the depth and breadth of the economic malaise comes to light.

Fundamentals haven’t really applied in the gold market, theoretically, for some time. Gold has made several shifts downward that were at the very least questioned by gold investors. A major shift occurred in the spring of 2008, before the financial crash. Prices in gold and silver suddenly dropped for no recognizable reason while the economic news got worse and demand was significantly higher. Investors tried to reconcile these divergent dynamics, but nobody really could to satisfaction.

We may never understand all the fundamentals at work in the gold market and the major shifts that we have seen in the past few years intimate that it’s simply not possible. However, we can look at the macroeconomic data and clearly see the value of gold going through the roof as the trends begun at the start of the real bull market in gold have not eased in actuality and are gaining in velocity.

Sprott may or may not be right about the US economy, but his perspective on market fundamentals is very prescient in today’s market. Traditionally, we have used market fundamentals to project the course of the market, to understand the market from an economic perspective, and to infer what is happening in the real world. If those dynamics are no longer valid, we need to, as Sprott urges, review what we consider to be fundamentals.

Fundamentally, gold bullion is the best real asset and tangible good we have available to us in a dangerously paper market.

]]>April 30, 2012 - Eric Sprott, the Canadian billionaire investor, is perhaps more known for his massive purchase of silver bullion than his work with gold bullion. However, as an investor with his ear close to the market, and being just far enough away to see the situation clearly, Sprott’s perspective on the current gold market and the future of precious metals is highly relevant.

A recent publication put out by Sprott Asset Management declares that, “when fundamentals no longer apply, review the fundamentals.” An interesting take on a reference to Ayn Rand, the tactic is certainly useful for making inferences about the economy in general.

Sprott declares they have not seen US recovery. This puts gold bullion and silver very high on the to buy list as they will inevitably increase in value as the depth and breadth of the economic malaise comes to light.

Fundamentals haven’t really applied in the gold market, theoretically, for some time. Gold has made several shifts downward that were at the very least questioned by gold investors. A major shift occurred in the spring of 2008, before the financial crash. Prices in gold and silver suddenly dropped for no recognizable reason while the economic news got worse and demand was significantly higher. Investors tried to reconcile these divergent dynamics, but nobody really could to satisfaction.

We may never understand all the fundamentals at work in the gold market and the major shifts that we have seen in the past few years intimate that it’s simply not possible. However, we can look at the macroeconomic data and clearly see the value of gold going through the roof as the trends begun at the start of the real bull market in gold have not eased in actuality and are gaining in velocity.

Sprott may or may not be right about the US economy, but his perspective on market fundamentals is very prescient in today’s market. Traditionally, we have used market fundamentals to project the course of the market, to understand the market from an economic perspective, and to infer what is happening in the real world. If those dynamics are no longer valid, we need to, as Sprott urges, review what we consider to be fundamentals.

Fundamentally, gold bullion is the best real asset and tangible good we have available to us in a dangerously paper market.

]]>http://www.gold-bullion.org/bullion/ericsprott-goldbullion/#13358207574026http://www.gold-bullion.org/bullion/goldbullion-projections/
Wed, 25 Apr 2012 16:02:53 -0700April 25, 2012 - A survey put out today by Thomson Reuters GFMS projects gold bullion gaining in value by year end and enjoying greater investor demand and higher prices through the year 2013. Thomson Reuters joins a relatively long list of investment banks and funds that are projecting the price of gold to gain ground in the coming year.

Goldman Sachs, JP Morgan, and Credit Suisse all place the price of gold higher by the end of 2012 and into 2013 as well. The most extensive price projects put gold at close to $2,500 per troy ounce near the end of that time period while the most conservative put the price of gold slightly less than $2,000 by the end of the year.

What is certain is that gold bullion is a very valuable asset in anyone’s investment portfolio in the current market environment. One of the major trends in the gold market is the diversity of investment. Gold is no longer just a risk-stabilizer for hedge funds, it has gone mainstream. The diversity of ownership is particularly strong in today’s market and all projections are that more and more investors will go to gold.

In today’s market, gold is a safe-haven asset, as it always has been in our society, and it is also a stabilization mechanism against the market volatility we’ve been seeing over the past many years. In the current market, it is gold that is considered strong, stable, and bankable.

Not only are major investment houses using gold to hedge their risks in the exposure of the marketplace, individual investors are now catching onto the sheen in gold. It is both a protection asset and a stabilization mechanism for the volatility in the market that we have seen over the past years. We know the market will continue to be an extremely volatile place for the foreseeable future and gold will be one of the key assets for managing the market to your own advantage.

This status literally makes gold the best investment instrument available on today’s market for individual investors and for large investment houses alike. The protection against volatility combined with the forecast for the accumulation of value in gold bullion is some of the most promising financial news we’ve seen.

]]>April 25, 2012 - A survey put out today by Thomson Reuters GFMS projects gold bullion gaining in value by year end and enjoying greater investor demand and higher prices through the year 2013. Thomson Reuters joins a relatively long list of investment banks and funds that are projecting the price of gold to gain ground in the coming year.

Goldman Sachs, JP Morgan, and Credit Suisse all place the price of gold higher by the end of 2012 and into 2013 as well. The most extensive price projects put gold at close to $2,500 per troy ounce near the end of that time period while the most conservative put the price of gold slightly less than $2,000 by the end of the year.

What is certain is that gold bullion is a very valuable asset in anyone’s investment portfolio in the current market environment. One of the major trends in the gold market is the diversity of investment. Gold is no longer just a risk-stabilizer for hedge funds, it has gone mainstream. The diversity of ownership is particularly strong in today’s market and all projections are that more and more investors will go to gold.

In today’s market, gold is a safe-haven asset, as it always has been in our society, and it is also a stabilization mechanism against the market volatility we’ve been seeing over the past many years. In the current market, it is gold that is considered strong, stable, and bankable.

Not only are major investment houses using gold to hedge their risks in the exposure of the marketplace, individual investors are now catching onto the sheen in gold. It is both a protection asset and a stabilization mechanism for the volatility in the market that we have seen over the past years. We know the market will continue to be an extremely volatile place for the foreseeable future and gold will be one of the key assets for managing the market to your own advantage.

This status literally makes gold the best investment instrument available on today’s market for individual investors and for large investment houses alike. The protection against volatility combined with the forecast for the accumulation of value in gold bullion is some of the most promising financial news we’ve seen.

]]>http://www.gold-bullion.org/bullion/goldbullion-projections/#13353949734024http://www.gold-bullion.org/bullion/buying-goldbullion/
Mon, 23 Apr 2012 15:57:21 -0700April 24, 2012 - Buying in gold bullion may have taken a dip recently as investors eye the situation in Europe and hoard more dollars. Everyone is aware that the best way to hedge against the contagion in Europe spreading is to own gold bullion, but there is a logical possibility of investors hedging against the further failure of European institutions by hoarding excess dollars.

This is an imminently bad sign, though it is relatively unquantifiable, because it places a loose timeline around when most investors believe the trouble in Europe will come to a head. The cash they are now hoarding with such a veracity as to literally take demand out of the gold market projects a serious incursion in the American banking system within the six to twelve month range. Beginning a process of hoarding cash much longer before that is relatively unlikely for the size of the wealth of the majority of investors in question.

The reason these people are hoarding cash is investors are literally forced to be in some very bad or at least questionable markets. In this economic climate, we are all forced to make economic decisions that we would not otherwise. In order to produce returns, investment houses, banks, and individuals have literally walked into markets where the risk is such that they would never normally have participated.

One of the ways they have been insulating themselves thus far is buying gold bullion. We know gold bullion will continue to accrue value, particularly in the current market. Therefore it is a good way to insure some of the riskier bets all investors have to make now.

The question becomes when do things get so bad that investor pull right out of these leaky markets and throw everything at gold? There is undoubtedly a point in the minds of most investors when this will happen. It is only a matter of time. Gold bullion is what we have always fallen back on. The question is not necessarily one of a full-blown crisis or catastrophic end-of-the-world event, but rather how bad do things get to cause a serious spook in that market?

Once those investors get spooked out of that market, they will move, as they always do, like bats out of hell into gold. Presaging that move now and positioning yourself in the gold market may be the best financial decision you can make in a lifetime. Gold bullion is where we’re going.

]]>April 24, 2012 - Buying in gold bullion may have taken a dip recently as investors eye the situation in Europe and hoard more dollars. Everyone is aware that the best way to hedge against the contagion in Europe spreading is to own gold bullion, but there is a logical possibility of investors hedging against the further failure of European institutions by hoarding excess dollars.

This is an imminently bad sign, though it is relatively unquantifiable, because it places a loose timeline around when most investors believe the trouble in Europe will come to a head. The cash they are now hoarding with such a veracity as to literally take demand out of the gold market projects a serious incursion in the American banking system within the six to twelve month range. Beginning a process of hoarding cash much longer before that is relatively unlikely for the size of the wealth of the majority of investors in question.

The reason these people are hoarding cash is investors are literally forced to be in some very bad or at least questionable markets. In this economic climate, we are all forced to make economic decisions that we would not otherwise. In order to produce returns, investment houses, banks, and individuals have literally walked into markets where the risk is such that they would never normally have participated.

One of the ways they have been insulating themselves thus far is buying gold bullion. We know gold bullion will continue to accrue value, particularly in the current market. Therefore it is a good way to insure some of the riskier bets all investors have to make now.

The question becomes when do things get so bad that investor pull right out of these leaky markets and throw everything at gold? There is undoubtedly a point in the minds of most investors when this will happen. It is only a matter of time. Gold bullion is what we have always fallen back on. The question is not necessarily one of a full-blown crisis or catastrophic end-of-the-world event, but rather how bad do things get to cause a serious spook in that market?

Once those investors get spooked out of that market, they will move, as they always do, like bats out of hell into gold. Presaging that move now and positioning yourself in the gold market may be the best financial decision you can make in a lifetime. Gold bullion is where we’re going.

]]>http://www.gold-bullion.org/bullion/buying-goldbullion/#13352218414023http://www.gold-bullion.org/bullion/goldbullion-affordable/
Thu, 05 Apr 2012 11:11:43 -0700April 5, 2012 - Gold bullion, due to the recent release from the Federal Open Markets Committee, is the most affordable it has been in a while. It’s always possible that a further correction to the downside will occur in the gold market, as in every other market. But since the correction in the gold market began almost six weeks ago, we are witnessing an environment in which the price of gold bullion is very much undervalued due to inflation in other assets in the market.

After Federal Reserve Chairman Ben Bernanke did and then didn’t allude to or indicate a round of Quantitative Easing in public appearances and Congressional testimony, markets have been gyrating one way and then another while uppity Wall Street types trade exclusively on the news. While the news is very important to the sentiment currently affecting world markets, we seem to have gone beyond a point when the actual market fundamentals are no longer relevant compared to impending news.

Consider that Ben Bernanke never actually said the Fed would not or would begin a round of Quantitative Easing. His words were taken, instead, as a newsworthy implication of a delay in Quantitative Easing or subtle indication of a Quantitative Easing. It is an opinion that the policy of the Federal Reserve should be clear, supported by strong and intelligible data, and the forecasts should be accurate.

However, in this case it seems the lesson is also one the markets need to learn. While sentiment is truly of the utmost importance, markets don’t inherently function on news alone. Perhaps they will in the future if we created enough derivatives and other paper debt instruments, but for now there is some underlying reality that the market is supposed to reflect.

During all this process, gold bullion is the only rational and intelligible asset to own. It is relatively immune to the mad money printing of the central bank and the monetary easing policies because it is a real tangible asset and can’t be printed into existence. This accounts both for gold’s popularity and its dramatic price increase in these past years. We know that price will continue to appreciate in reality despite any momentary corrections or adjustments because the Fed will continue to print money. It is a paper market in which gold bullion will be the ultimate winner.

]]>April 5, 2012 - Gold bullion, due to the recent release from the Federal Open Markets Committee, is the most affordable it has been in a while. It’s always possible that a further correction to the downside will occur in the gold market, as in every other market. But since the correction in the gold market began almost six weeks ago, we are witnessing an environment in which the price of gold bullion is very much undervalued due to inflation in other assets in the market.

After Federal Reserve Chairman Ben Bernanke did and then didn’t allude to or indicate a round of Quantitative Easing in public appearances and Congressional testimony, markets have been gyrating one way and then another while uppity Wall Street types trade exclusively on the news. While the news is very important to the sentiment currently affecting world markets, we seem to have gone beyond a point when the actual market fundamentals are no longer relevant compared to impending news.

Consider that Ben Bernanke never actually said the Fed would not or would begin a round of Quantitative Easing. His words were taken, instead, as a newsworthy implication of a delay in Quantitative Easing or subtle indication of a Quantitative Easing. It is an opinion that the policy of the Federal Reserve should be clear, supported by strong and intelligible data, and the forecasts should be accurate.

However, in this case it seems the lesson is also one the markets need to learn. While sentiment is truly of the utmost importance, markets don’t inherently function on news alone. Perhaps they will in the future if we created enough derivatives and other paper debt instruments, but for now there is some underlying reality that the market is supposed to reflect.

During all this process, gold bullion is the only rational and intelligible asset to own. It is relatively immune to the mad money printing of the central bank and the monetary easing policies because it is a real tangible asset and can’t be printed into existence. This accounts both for gold’s popularity and its dramatic price increase in these past years. We know that price will continue to appreciate in reality despite any momentary corrections or adjustments because the Fed will continue to print money. It is a paper market in which gold bullion will be the ultimate winner.

]]>http://www.gold-bullion.org/bullion/goldbullion-affordable/#13336495034019http://www.gold-bullion.org/bullion/gold-bullion/
Wed, 14 Mar 2012 13:01:14 -0700March 14, 2012 - Gold bullion is the investment of choice as banking sector stocks enjoy an eight-month high on news that only four out of nineteen failed Federal stress tests. While markets around the world rallied on this news, the affordability of gold really stands out at a time like this. Gold has been regaining ground since the understanding came from the Federal Reserve that another official round of Quantitative Easing was being delayed and has recently breached the psychologically important $1,700 level.

Investors looking to purchase may be seeing the best opportunity to do so as the performance of stocks makes the news and gold bullion is completely undervalued in its current position. Some of the best trading advice consists of the fundamentals. Buy low and sell high. Buying financial stocks makes no sense right now because they are probably enjoying the best prices they will see this entire year.

Yet gold, which is not making the news, is a relatively well-priced investment. Jim Rogers, legendary Wall Street investor and co-founder of the Quantum Fund with George Soros, has said in the past month that, “If gold goes to $1,600, I hope I’m smart enough to buy more.”

That is the essence the current dip in gold bullion. This is a temporary market fluctuation in an overall bull market. Gold has been in bull territory for 11 years and shows no signs of exiting the bull territory because of market fundamentals that include the policy of the Federal Reserve, the central bank in the United States. The Fed has openly stated it will keep interest rates low through 2014, veritably ensuring a bull market for gold during that time.

The Fed can’t raise rates without endangering the economy despite a “frustratingly slow” recovery, in the words of Fed Chairman Ben Bernanke. The mid to long-term trend remains the same and promises even further returns on gold. Gold bullion, not financials stock, is the best investment to make right now.

]]>March 14, 2012 - Gold bullion is the investment of choice as banking sector stocks enjoy an eight-month high on news that only four out of nineteen failed Federal stress tests. While markets around the world rallied on this news, the affordability of gold really stands out at a time like this. Gold has been regaining ground since the understanding came from the Federal Reserve that another official round of Quantitative Easing was being delayed and has recently breached the psychologically important $1,700 level.

Investors looking to purchase may be seeing the best opportunity to do so as the performance of stocks makes the news and gold bullion is completely undervalued in its current position. Some of the best trading advice consists of the fundamentals. Buy low and sell high. Buying financial stocks makes no sense right now because they are probably enjoying the best prices they will see this entire year.

Yet gold, which is not making the news, is a relatively well-priced investment. Jim Rogers, legendary Wall Street investor and co-founder of the Quantum Fund with George Soros, has said in the past month that, “If gold goes to $1,600, I hope I’m smart enough to buy more.”

That is the essence the current dip in gold bullion. This is a temporary market fluctuation in an overall bull market. Gold has been in bull territory for 11 years and shows no signs of exiting the bull territory because of market fundamentals that include the policy of the Federal Reserve, the central bank in the United States. The Fed has openly stated it will keep interest rates low through 2014, veritably ensuring a bull market for gold during that time.

The Fed can’t raise rates without endangering the economy despite a “frustratingly slow” recovery, in the words of Fed Chairman Ben Bernanke. The mid to long-term trend remains the same and promises even further returns on gold. Gold bullion, not financials stock, is the best investment to make right now.

]]>http://www.gold-bullion.org/bullion/gold-bullion/#13317552743994http://www.gold-bullion.org/bullion/gold-bullion-buy/
Thu, 08 Mar 2012 11:31:19 -0800March 8, 2012 - Gold bullion has been a better buy this past week than at any other time in the past three months. Last Wednesday, Ben Bernanke appeared before Congress and neglected to mention a definitive third round of fiscal stimulus. There have been two official rounds of Quantitative Easing under the current Federal Reserve Chairman and both have provided the needed short-term boost to keep the economy afloat.

They have also flooded the market with liquidity that has eventually made its way to the purchasing power of the US dollar. Unfortunately, you cannot print such vast amounts of dollars without fundamentally affecting the value of all dollars. This inherent price dynamic has yielded a decade-long bull run in the gold market and made gold bullion the hottest commodity of the past four years.

Perhaps through day-trading you could have realized the kind of gains that were made in the gold bull market, and those forms of trading carry a significant risk, but otherwise no other investment or asset has produced the same triple digit return that gold has. Today, the Federal Reserve announced it will consider a third “sterilized” round of fiscal stimulus, and the price of gold spiked over $10 per ounce on that news alone.

This is direct confirmation that the Federal Reserve can, must, and will continue to print money in fiscal stimulus programs in the near future. As a direct result, the price of gold will continue its decade-long gain, perhaps even accelerating the gains it has made since 2008, when the Federal stimulus programs began in earnest. It is no exaggeration that gold is up over 600 percent in those ten years. Even with a serious correction at year’s end, gold realized an 11 percent gain last year and over 24 percent in 2010.

There is a direct relationship between the amount of dollars printed by the Federal Reserve and the price of gold. This is one of the market fundamentals that has led to the current gains in the market. Now, with more Quantitative Easing from the Federal Reserve in the near future of the markets, gold bullion is the best buy available to investors who wish to realize the maximum return and gain on short and mid-term investments.

]]>March 8, 2012 - Gold bullion has been a better buy this past week than at any other time in the past three months. Last Wednesday, Ben Bernanke appeared before Congress and neglected to mention a definitive third round of fiscal stimulus. There have been two official rounds of Quantitative Easing under the current Federal Reserve Chairman and both have provided the needed short-term boost to keep the economy afloat.

They have also flooded the market with liquidity that has eventually made its way to the purchasing power of the US dollar. Unfortunately, you cannot print such vast amounts of dollars without fundamentally affecting the value of all dollars. This inherent price dynamic has yielded a decade-long bull run in the gold market and made gold bullion the hottest commodity of the past four years.

Perhaps through day-trading you could have realized the kind of gains that were made in the gold bull market, and those forms of trading carry a significant risk, but otherwise no other investment or asset has produced the same triple digit return that gold has. Today, the Federal Reserve announced it will consider a third “sterilized” round of fiscal stimulus, and the price of gold spiked over $10 per ounce on that news alone.

This is direct confirmation that the Federal Reserve can, must, and will continue to print money in fiscal stimulus programs in the near future. As a direct result, the price of gold will continue its decade-long gain, perhaps even accelerating the gains it has made since 2008, when the Federal stimulus programs began in earnest. It is no exaggeration that gold is up over 600 percent in those ten years. Even with a serious correction at year’s end, gold realized an 11 percent gain last year and over 24 percent in 2010.

There is a direct relationship between the amount of dollars printed by the Federal Reserve and the price of gold. This is one of the market fundamentals that has led to the current gains in the market. Now, with more Quantitative Easing from the Federal Reserve in the near future of the markets, gold bullion is the best buy available to investors who wish to realize the maximum return and gain on short and mid-term investments.

Stock prices might as well be set by a spin of the wheel. A snippet of news sends them soaring, but then traders mull it over briefly and the same news sends them right back down. They are so busy trying to row the boat with just one oar that nobody has noticed the gaping hole in the hull.

Gold bullion, meanwhile, is tugging against the reins. I am hoping that is a sign that investors are beginning to see beyond the blinders the Fed put on us. Inflation is not the problem. Deflation is not the problem. Unemployment is not the problem. Even debt is not the problem. They are all just symptoms.

The problem is a systemic disease called fiat money. If you are into...

Stock prices might as well be set by a spin of the wheel. A snippet of news sends them soaring, but then traders mull it over briefly and the same news sends them right back down. They are so busy trying to row the boat with just one oar that nobody has noticed the gaping hole in the hull.

Gold bullion, meanwhile, is tugging against the reins. I am hoping that is a sign that investors are beginning to see beyond the blinders the Fed put on us. Inflation is not the problem. Deflation is not the problem. Unemployment is not the problem. Even debt is not the problem. They are all just symptoms.

The problem is a systemic disease called fiat money. If you are into conspiracy theories, fiat money is the mother of them all. Only this one is real. And it is old hat.

Precedents reach back to the very beginnings of government. Regardless of good intentions, once a government is in place it will always seek to extend its power and control. Always. Our forefathers knew that all to well and they knew how to prevent it from happening here: severely restrict the federal government’s power and above all else, forbid fiat money.

Sadly the framers of the Constitution could not foresee an America in which the people would willingly to give up their liberty in exchange for a government handout. After nearly a century and a half of robust economic development the government finally got its mitts on the money supply through legislative trickery and it’s been straight downhill ever since.

The government threatened us with 10 years in prison if we didn’t hand over our gold, and we acquiesced. They paid us $20 an ounce then turned around and sold it for $35. Nobody complained.

In direct violation of the Constitution they unilaterally voided all private contract clauses stipulating repayment in kind (gold), wiping out fortunes held in extended term corporate bonds. But the people were hurting and needed a scapegoat. We took our free lunch and said to hell with the free market.

So now we are in the end game. You don’t need a crystal ball to see where the markets will go – you need only a history book.

When the fiat system fails all that will remain of today’s wealth will be that held in gold bullion.

]]>http://www.gold-bullion.org/bullion/goldbullion-vs-dowjones/#13203554673822http://www.gold-bullion.org/bullion/goldbullion-vs-fiatmoney/
Mon, 31 Oct 2011 14:34:02 -0700October 31, 2011 – Is gold bullion worth any less today because the Japanese devalued the yen? Of course not. The drop in price is only a hint of things to come in the battle of the century: gold bullion vs. fiat money.

“Gold is not a financial asset to be compared with dot-com stocks or Miami condos and it is not a commodity like pork bellies or crude oil,” says fund manager Paul Brodsky. “It is the ultimate currency for the truly sophisticated wealth holder in a time of substantial unreserved credit promotion.”

In Resource World Nick Barisheff makes the argument for $10,000 gold and cites a critical difference between the way gold bullion is viewed in the eastern and western worlds. In the west we are focused on trading gold like any other asset, fixing its price in currencies. In the east, however, gold is still traded as money.

]]>October 31, 2011 – Is gold bullion worth any less today because the Japanese devalued the yen? Of course not. The drop in price is only a hint of things to come in the battle of the century: gold bullion vs. fiat money.

“Gold is not a financial asset to be compared with dot-com stocks or Miami condos and it is not a commodity like pork bellies or crude oil,” says fund manager Paul Brodsky. “It is the ultimate currency for the truly sophisticated wealth holder in a time of substantial unreserved credit promotion.”

In Resource World Nick Barisheff makes the argument for $10,000 gold and cites a critical difference between the way gold bullion is viewed in the eastern and western worlds. In the west we are focused on trading gold like any other asset, fixing its price in currencies. In the east, however, gold is still traded as money.

When you think of currencies in terms of gold, and not the other way around, three things become abundantly clear:

Global currencies are losing purchasing power

Money creation is extremely inflationary

Irreversible trends will continue to cause gold to rise

To illustrate the currencies’ loss of purchasing power Barisheff compares the ounces of gold bullion it would take to make three common purchases in 1971 and 2011.

A compact car cost 66 oz. of gold in 1971 and only 8 in 2011. For the average Canadian house the figures are 703 oz. and 199 oz. respectively and the DJIA 25 oz. and 6.5 oz.

There is no mystery in currencies’ loss of purchasing power: money supplies are expanding a far greater rate than gold supplies. MZM, one of the best indicators of money supply, has increased nearly 900% over the last three decades while gold production has increased the supply by an average of only 3% per year.

While the government persists in glossing over the inflationary effects of money creation with its version of the CPI, John Williams of ShadowStats still uses the original basket of goods that governments used prior to the early 1990s. By that measure the CPI is at 12%.

Of the irreversible trends “the most prominent are central bank buying, Chinese and Indian buying, the movement away from the US dollar, peak gold and under-investment in gold by pension funds,” Barisheff says.

Compared to gold’s millennia as reigning champ, fiat money is a flyweight upstart that doesn’t stand a chance in the ring. Gold bullion will rise to $10,000 simply because that is what it will take to put global wealth back on solid ground.

A typical example is Wall Street’s seemingly knee-jerk reaction to the EU’s latest plan to conquer the sovereign debt crisis. Why all the excitement over what amounts to a default? It’s the sort of twist that puts a smile on Bernanke’s face.

The so-called agreement began with some serious arm twisting, accented by a healthy dose of fear, a thinly disguised version of the protection racket.

“I’ll make you an offer you can’t refuse,” EU leaders were told. “Pony up half of your Greek debt or we’ll drive Greece into insolvency and you’ll be left with nothing.” Given that choice, an “agreement” was inevitable.

For Europe it was a lose-lose decision, but for the Wizards of Wall Street it was win-win. And for gold bullion it was “who cares?”

Because settling for half the face value of debt does not technically constitute default, the bankers who issued insurance against default don’t have to pay a dime, so they are very happy with the deal.

“On the other side of the coin,” says John Tammy in Whiskey and Gunpowder, “those poor suckers holding the bonds and insurance got a double-whammy.” They lose half of their investment to what is clearly a default, and thanks to a semantic twist they lose out on their insurance as well.

There’s nothing new in that. Over the past three decades inflation and devaluation of the dollar have been swept under a carpet of similar deceptions. The CPI was doctored to siphon billions off from people on fixed incomes. Credit was lauded as a means to riches. Trade imbalance was sold as a sign of America’s position as forerunner in the new Information Age. And today structural unemployment continues to be brushed aside as pure myth.

But Wall Street is growing decidedly more bipolar every day. Insiders are driven to euphoria by news that once could be spun to entrap unsuspecting investors, only to fall back into depression with the realization that we aren’t falling for it so readily any more.

Quite simply, investors are learning that the real truth lies with gold bullion.

A typical example is Wall Street’s seemingly knee-jerk reaction to the EU’s latest plan to conquer the sovereign debt crisis. Why all the excitement over what amounts to a default? It’s the sort of twist that puts a smile on Bernanke’s face.

The so-called agreement began with some serious arm twisting, accented by a healthy dose of fear, a thinly disguised version of the protection racket.

“I’ll make you an offer you can’t refuse,” EU leaders were told. “Pony up half of your Greek debt or we’ll drive Greece into insolvency and you’ll be left with nothing.” Given that choice, an “agreement” was inevitable.

For Europe it was a lose-lose decision, but for the Wizards of Wall Street it was win-win. And for gold bullion it was “who cares?”

Because settling for half the face value of debt does not technically constitute default, the bankers who issued insurance against default don’t have to pay a dime, so they are very happy with the deal.

“On the other side of the coin,” says John Tammy in Whiskey and Gunpowder, “those poor suckers holding the bonds and insurance got a double-whammy.” They lose half of their investment to what is clearly a default, and thanks to a semantic twist they lose out on their insurance as well.

There’s nothing new in that. Over the past three decades inflation and devaluation of the dollar have been swept under a carpet of similar deceptions. The CPI was doctored to siphon billions off from people on fixed incomes. Credit was lauded as a means to riches. Trade imbalance was sold as a sign of America’s position as forerunner in the new Information Age. And today structural unemployment continues to be brushed aside as pure myth.

But Wall Street is growing decidedly more bipolar every day. Insiders are driven to euphoria by news that once could be spun to entrap unsuspecting investors, only to fall back into depression with the realization that we aren’t falling for it so readily any more.

Quite simply, investors are learning that the real truth lies with gold bullion.

]]>http://www.gold-bullion.org/bullion/equities-goldbullion-investments/#13198298133811http://www.gold-bullion.org/bullion/goldbullion-price-breakthrough/
Wed, 26 Oct 2011 12:34:59 -0700October 26, 2011 – It certainly has been an agonizing wait for gold bullion to break back through the $1,700 mark. But gold is still so undervalued that it will take a whole lot more than that to convince me that the market is back in charge.

Fiat money throws a huge monkey wrench into the markets. Left alone there is nothing simpler than market mechanics. Two parties come together, each having something the other wants. The come to agreement on the relative values and make the exchange. Both leave with something they perceive to be of equal or greater value than that which they gave up.

It works because the markets only transfer wealth between the parties. They do not create wealth.

Money in any form, including gold bullion, is no more than a measure of wealth. In and of itself it is...

]]>October 26, 2011 – It certainly has been an agonizing wait for gold bullion to break back through the $1,700 mark. But gold is still so undervalued that it will take a whole lot more than that to convince me that the market is back in charge.

Fiat money throws a huge monkey wrench into the markets. Left alone there is nothing simpler than market mechanics. Two parties come together, each having something the other wants. The come to agreement on the relative values and make the exchange. Both leave with something they perceive to be of equal or greater value than that which they gave up.

It works because the markets only transfer wealth between the parties. They do not create wealth.

Money in any form, including gold bullion, is no more than a measure of wealth. In and of itself it is worthless until it is used to make a purchase. For millennia gold has been a stable and universally accepted measure, proving it to be a reliable store of wealth.

Fiat money, however, has nothing tangible to give it worth unless the source of the currency balances its money supply with its reserves of gold. The greater the gap between the two the weaker the link between the currency and wealth. Today most fiat monies have become so diluted that the market participants can no longer come to agreement on their value.

One notable exception in the recent past was the Swiss franc. While the franc is not officially exchangeable for gold the Swiss have always maintained sufficient gold bullion reserves to balance their money supply. But rational monetary policy cannot hold up against a world hooked on fiat money.

There was a rush on the franc by investors looking for anything that promised to be a store for their wealth. The price of the franc soared, threatening the Swiss with serious inflation. The only way they could get back in control of their economy was to join the party and weaken their currency.

The global economic crisis cannot be resolved until the markets are freed to put things in order. And that will not be possible until significant correlation can be reestablished between currency and gold bullion.

It definitely will not be easy. If we were to balance the books today and go back on the gold standard, gold would have to rise to more than $11,000 an ounce. That be a reasonable argument against making a sudden switch, but ignoring the problem entirely would be a grave mistake.

I won’t believe that the free market is back in control until gold bullion prices start making real progress on balancing out the global flood of fiat money.

A Rasmussen Reports survey taken last Friday reveals that voters are warming up to the idea, with 44% at least somewhat in favor while only 28% are not. But the survey also suggests that there is a widespread lack of understanding about what a return to the gold standard means.

When told that going back on the gold standard would “dramatically reduce the power of central bankers and political leaders to steer the economy,” those in favor jumped to 57% while those against fell to 19%. Almost two-thirds of mainstream voters would approve of the change if it means taking control over the economy away from politicians and the Fed.

However, slightly more than half of the political class – those whose livelihood is derived from politics and the pool from which future leaders are drawn – oppose any reconnection of our currency to gold bullion.

In the past that may have precluded any real chance of getting back to hard money, but Americans today are sick and tired of being brushed aside. Nearly three-quarters of all voters now “believe government and big business work together against the interests of consumers and investors.” That is a force to be reckoned with, but so far they have failed to take up the cause in earnest.

While two thirds of voters don’t hold a favorable opinion of the Fed, fewer than half “have followed news stories about whether the U.S. monetary system should return to the gold standard” and just 15% have followed the issue closely. Still the anti-Fed sentiment is growing and it transcends “nearly all demographic groups.”

With a growing cadre of presidential hopefuls beating the drum the debate over returning to the gold standard is certain to be brought to the forefront. It is a perfect campaign issue, one sure to resonate with voters who already know in their gut that the collusion between our politicians, Wall Street, and the Fed are to blame for their economic hardship.

Once the connection between a sound currency anchored to gold bullion and a healthy economy becomes better understood, Ron Paul made a last step forward to take his bows.

A Rasmussen Reports survey taken last Friday reveals that voters are warming up to the idea, with 44% at least somewhat in favor while only 28% are not. But the survey also suggests that there is a widespread lack of understanding about what a return to the gold standard means.

When told that going back on the gold standard would “dramatically reduce the power of central bankers and political leaders to steer the economy,” those in favor jumped to 57% while those against fell to 19%. Almost two-thirds of mainstream voters would approve of the change if it means taking control over the economy away from politicians and the Fed.

However, slightly more than half of the political class – those whose livelihood is derived from politics and the pool from which future leaders are drawn – oppose any reconnection of our currency to gold bullion.

In the past that may have precluded any real chance of getting back to hard money, but Americans today are sick and tired of being brushed aside. Nearly three-quarters of all voters now “believe government and big business work together against the interests of consumers and investors.” That is a force to be reckoned with, but so far they have failed to take up the cause in earnest.

While two thirds of voters don’t hold a favorable opinion of the Fed, fewer than half “have followed news stories about whether the U.S. monetary system should return to the gold standard” and just 15% have followed the issue closely. Still the anti-Fed sentiment is growing and it transcends “nearly all demographic groups.”

With a growing cadre of presidential hopefuls beating the drum the debate over returning to the gold standard is certain to be brought to the forefront. It is a perfect campaign issue, one sure to resonate with voters who already know in their gut that the collusion between our politicians, Wall Street, and the Fed are to blame for their economic hardship.

Once the connection between a sound currency anchored to gold bullion and a healthy economy becomes better understood, Ron Paul made a last step forward to take his bows.

]]>http://www.gold-bullion.org/bullion/return-goldstandard/#13194871643800http://www.gold-bullion.org/bullion/gold-bullion-reserve/
Fri, 21 Oct 2011 11:54:36 -0700October 21, 2011 – If you aren’t privately holding gold bullion you are wagering everything you have on a roll of loaded dice. While it is theoretically possible to roll a natural or make point, the physics of doctored dice make it highly unlikely.

Equity investment today is no less a crap shoot, and the game is likewise rigged. There are countless scenarios for how this global monetary correction might play out badly, and just a few highly unlikely possibilities that everything will come out OK.

The Dow has gone completely berserk and for good reason: the traders’ crystal balls have grown dark. The market has ceased following their rules and they can’t figure out what will happen tomorrow, let alone a few months down the road. Wall Street, just as all of us regular folks, has to be weaned off entitlements and get back to basics...

]]>October 21, 2011 – If you aren’t privately holding gold bullion you are wagering everything you have on a roll of loaded dice. While it is theoretically possible to roll a natural or make point, the physics of doctored dice make it highly unlikely.

Equity investment today is no less a crap shoot, and the game is likewise rigged. There are countless scenarios for how this global monetary correction might play out badly, and just a few highly unlikely possibilities that everything will come out OK.

The Dow has gone completely berserk and for good reason: the traders’ crystal balls have grown dark. The market has ceased following their rules and they can’t figure out what will happen tomorrow, let alone a few months down the road. Wall Street, just as all of us regular folks, has to be weaned off entitlements and get back to basics.

Wall Street isn’t interested in giving up the game and moving into gold bullion quite yet, however. Insiders still believe that Poppa Bernanke can kiss their boo-boos and make them better. And so, with his legion of lemmings close at his heels, Bernanke leads the charge onward towards the approaching cliff.

In a speech before the Federal Reserve Bank of Boston 56th Economic Conference Bernanke made it perfectly clear “that the current framework for monetary policy … will remain the standard approach.” The only thing he sees needing change is “the ability of central banks to communicate with the public.” From where he stands, the benefits of his policies have been amply demonstrated.

Bernanke goes on to restate his belief that the Fed must take “actions to support the normal functioning of financial institutions and markets.” Forget free market forces, Bernanke knows best. And he is hell-bent on “improving credit flows and enhancing monetary policy transmission.”

There’s not much the individual investor can do to restore sanity to the market as long the Fed is running the show. Until Bernanke is pinned to the mat by free market forces and cries uncle, the economy will keep accelerating downhill and the stock market will grow ever more erratic.

When it’s anybody’s guess what tomorrow will bring, you simply must play it safe. And that means privately holding a substantial portion of your wealth in gold bullion.

]]>http://www.gold-bullion.org/bullion/gold-bullion-reserve/#13192232763796http://www.gold-bullion.org/bullion/goldbullion-backed-economy/
Wed, 19 Oct 2011 12:17:35 -0700October 19, 2011 – Appreciating the wisdom of gold bullion investment requires clear and dispassionate understanding of the true state of our union. Sometimes that can be found where you least expect it.

A very dear friend of mine is a social worker, by nature extremely altruistic and hardly of a libertarian bent. Yet when the financial crisis first broke she didn’t hesitate to say, “Just let the banks fail so we can move on.”

Perhaps her keen mind, unfettered by lofty economic theory, is better equipped to perceive the obvious. She believes the government has a duty to the welfare of its citizens, but it has stepped so far beyond its bounds that is incapable of ensuring even our most basic needs.

My friend also believes that the government’s relentless coercion to forgo savings in favor of easy credit and risky investments is nothing short of criminal. She accepts that the dollar’s days are numbered and realizes the need for a currency backed by gold bullion.

Because she understands that hard choices and personal sacrifice are necessary to bring this crisis to an end, I wasn’t surprised when this died-in-the-wool liberal came to me with Ron Paul’s “Plan to Restore America.”

“You know,” she said, “this actually makes a lot of sense.”

Indeed it does. Dr. Paul’s plan eschews all favoritism and doesn’t pussyfoot around trying to soften the blow of necessary change.

The Plan to Restore America eliminates the Departments of Energy, HUD, Commerce, Interior, and Education along with the Transportation Security Administration. It abolishes corporate subsidies, withdraws foreign aid, and cuts all funding for foreign wars. It repeals ObamaCare, Dodd-Frank, and Sarbanes-Oxley and cancels “all onerous regulations previously issued by Executive Order.”

In addition, the plan reduces the federal workforce by 10 % and “slashes Congressional pay and perks, and curbs excessive federal travel.” Dr. Paul will put his money where his mouth is, taking “a salary of $39,336, approximately equal to the median personal income of the American worker.”

Perhaps the most important element of the plan is a call for a full audit of the Fed and implementation of “competing currency legislation to strengthen the dollar and stabilize inflation.”

Dr. Paul presents no new philosophy here. For more than half a century he has consistently advocated the same no-nonsense approach to government and the economy. May his campaign for lean government and a sound economy backed by gold bullion come to fruition at last.

]]>October 19, 2011 – Appreciating the wisdom of gold bullion investment requires clear and dispassionate understanding of the true state of our union. Sometimes that can be found where you least expect it.

A very dear friend of mine is a social worker, by nature extremely altruistic and hardly of a libertarian bent. Yet when the financial crisis first broke she didn’t hesitate to say, “Just let the banks fail so we can move on.”

Perhaps her keen mind, unfettered by lofty economic theory, is better equipped to perceive the obvious. She believes the government has a duty to the welfare of its citizens, but it has stepped so far beyond its bounds that is incapable of ensuring even our most basic needs.

My friend also believes that the government’s relentless coercion to forgo savings in favor of easy credit and risky investments is nothing short of criminal. She accepts that the dollar’s days are numbered and realizes the need for a currency backed by gold bullion.

Because she understands that hard choices and personal sacrifice are necessary to bring this crisis to an end, I wasn’t surprised when this died-in-the-wool liberal came to me with Ron Paul’s “Plan to Restore America.”

“You know,” she said, “this actually makes a lot of sense.”

Indeed it does. Dr. Paul’s plan eschews all favoritism and doesn’t pussyfoot around trying to soften the blow of necessary change.

The Plan to Restore America eliminates the Departments of Energy, HUD, Commerce, Interior, and Education along with the Transportation Security Administration. It abolishes corporate subsidies, withdraws foreign aid, and cuts all funding for foreign wars. It repeals ObamaCare, Dodd-Frank, and Sarbanes-Oxley and cancels “all onerous regulations previously issued by Executive Order.”

In addition, the plan reduces the federal workforce by 10 % and “slashes Congressional pay and perks, and curbs excessive federal travel.” Dr. Paul will put his money where his mouth is, taking “a salary of $39,336, approximately equal to the median personal income of the American worker.”

Perhaps the most important element of the plan is a call for a full audit of the Fed and implementation of “competing currency legislation to strengthen the dollar and stabilize inflation.”

Dr. Paul presents no new philosophy here. For more than half a century he has consistently advocated the same no-nonsense approach to government and the economy. May his campaign for lean government and a sound economy backed by gold bullion come to fruition at last.

]]>http://www.gold-bullion.org/bullion/goldbullion-backed-economy/#13190518553792http://www.gold-bullion.org/bullion/gold-market-bullion/
Mon, 17 Oct 2011 14:14:04 -0700October 17, 2011 – That gold bullion prices are holding steady against the relentless onslaught of Wall Street is testament to the tenacity of the free market. The persistence of the status quo amidst outrage, confusion, and disbelief is testament to Wall Street’s determination to thwart the free market.

A recent article in “Mother Jones” magazine titled “6 Big Economic Myths, Debunked,” typifies the prolific pseudo-intellectual drivel aimed at fanning the infighting by obscuring the real plight of our economy. Here is just a sample:

Myth #1: The stimulus failed. Consider this one subjectively. Look about and try to find one real-world indication that it succeeded. But the article claims “that the 2009 stimulus package increased economic growth, reduced unemployment, and put millions of people back to work.”

Sure a few million went back to work, but at an average loss of income of some 17.5%. And what about all of the new entrants to the job market? You know, the college grads in hock up to their necks for an education that makes them overqualified for the few job openings there are. And let’s not forget the bang for the buck – estimates place the cost per job created between $250,000 and $300,000 each.

Myth #2: The deficit is our biggest problem right now. Just calling that a myth boggles the mind. This is economics 101. If you have unsustainable debt and persistent problems servicing that debt, going further into debt can make matters only worse. The cost of new debt will rise dramatically, and printing up more money to cover it only escalates the progress towards default. Oh wait, I forgot myth #5.

Myth #5: Obama is debasing the dollar. “There's just no basis to the claim that Obama has debased the currency,” we are told. If he had, the recession would be over because suddenly demand for exports priced in the cheaper dollar would surge while expensive imports would revive “buy American” sentiment. The rest of the world would, of course, meekly accept the artificial trade advantage.

In fact exports did spike early on and the world was swift to snuff out the inequality. The only thing holding up the dollar is the vested interests of nations holding our debt who are desperately trying to divest without their national reserves going up in smoke. Check back in on the issue next year after the Pacific Asian Gold Exchange opens its doors.

These aren’t myths, they are plain and simple truths. You cannot run an economy on heaps of Monopoly money and maxed out credit cards. Period.

Gold bullion prices haven’t buckled as planned because the free market has had just about enough of the nonsense.

]]>October 17, 2011 – That gold bullion prices are holding steady against the relentless onslaught of Wall Street is testament to the tenacity of the free market. The persistence of the status quo amidst outrage, confusion, and disbelief is testament to Wall Street’s determination to thwart the free market.

A recent article in “Mother Jones” magazine titled “6 Big Economic Myths, Debunked,” typifies the prolific pseudo-intellectual drivel aimed at fanning the infighting by obscuring the real plight of our economy. Here is just a sample:

Myth #1: The stimulus failed. Consider this one subjectively. Look about and try to find one real-world indication that it succeeded. But the article claims “that the 2009 stimulus package increased economic growth, reduced unemployment, and put millions of people back to work.”

Sure a few million went back to work, but at an average loss of income of some 17.5%. And what about all of the new entrants to the job market? You know, the college grads in hock up to their necks for an education that makes them overqualified for the few job openings there are. And let’s not forget the bang for the buck – estimates place the cost per job created between $250,000 and $300,000 each.

Myth #2: The deficit is our biggest problem right now. Just calling that a myth boggles the mind. This is economics 101. If you have unsustainable debt and persistent problems servicing that debt, going further into debt can make matters only worse. The cost of new debt will rise dramatically, and printing up more money to cover it only escalates the progress towards default. Oh wait, I forgot myth #5.

Myth #5: Obama is debasing the dollar. “There's just no basis to the claim that Obama has debased the currency,” we are told. If he had, the recession would be over because suddenly demand for exports priced in the cheaper dollar would surge while expensive imports would revive “buy American” sentiment. The rest of the world would, of course, meekly accept the artificial trade advantage.

In fact exports did spike early on and the world was swift to snuff out the inequality. The only thing holding up the dollar is the vested interests of nations holding our debt who are desperately trying to divest without their national reserves going up in smoke. Check back in on the issue next year after the Pacific Asian Gold Exchange opens its doors.

These aren’t myths, they are plain and simple truths. You cannot run an economy on heaps of Monopoly money and maxed out credit cards. Period.

Gold bullion prices haven’t buckled as planned because the free market has had just about enough of the nonsense.

]]>http://www.gold-bullion.org/bullion/gold-market-bullion/#13188860443788http://www.gold-bullion.org/bullion/bullion-gold/
Fri, 14 Oct 2011 12:21:01 -0700October 14, 2011 – While the stock market keeps up with its crazy swings the price of gold bullion remains comparatively steady. It as if their roles have been reversed.

On the other hand, it could be no more than a sign of what is to come – the free market moving in for a coup.

In a free market goods are produced according to diminishing returns, up to the point where marginal revenue equals marginal cost. Since Nixon removed all support for the dollar the government has been free to produce as many dollars as it desired at virtually zero cost. But in a free market equilibrium would be reached when the revenue from those dollars, in other words their worth, is also zero.

The problem with paper money is that printing more of it than can be justified by real growth in physical wealth – the GDP – can lead only to its devaluation. The same is true of credit without the backing of physical assets. But credit expansion works wonders for a government/central bank monopoly.

Expanding credit creates the illusion of growing wealth while disguising the erosion of the foundation of that wealth. Even in hard times further borrowing is rationalized as being an investment in the future. In truth, however, it can only destroy what little wealth remains.

Despite the never ending efforts of Wall Street and its wholly owned subsidiary, the Fed, gold bullion follows a different drummer – the free market. Today the free market is also exerting its influence over fiat money around the globe, slowly but inexorably moving to balance its worth with its cost.

It is a force as fundamental and irresistible as the tides. It is what makes gold bullion real and permanent money and fiat currency illusory and short-lived.

]]>October 14, 2011 – While the stock market keeps up with its crazy swings the price of gold bullion remains comparatively steady. It as if their roles have been reversed.

On the other hand, it could be no more than a sign of what is to come – the free market moving in for a coup.

In a free market goods are produced according to diminishing returns, up to the point where marginal revenue equals marginal cost. Since Nixon removed all support for the dollar the government has been free to produce as many dollars as it desired at virtually zero cost. But in a free market equilibrium would be reached when the revenue from those dollars, in other words their worth, is also zero.

The problem with paper money is that printing more of it than can be justified by real growth in physical wealth – the GDP – can lead only to its devaluation. The same is true of credit without the backing of physical assets. But credit expansion works wonders for a government/central bank monopoly.

Expanding credit creates the illusion of growing wealth while disguising the erosion of the foundation of that wealth. Even in hard times further borrowing is rationalized as being an investment in the future. In truth, however, it can only destroy what little wealth remains.

Despite the never ending efforts of Wall Street and its wholly owned subsidiary, the Fed, gold bullion follows a different drummer – the free market. Today the free market is also exerting its influence over fiat money around the globe, slowly but inexorably moving to balance its worth with its cost.

It is a force as fundamental and irresistible as the tides. It is what makes gold bullion real and permanent money and fiat currency illusory and short-lived.

]]>http://www.gold-bullion.org/bullion/bullion-gold/#13186200613784http://www.gold-bullion.org/bullion/prices-gold-bullion/
Wed, 12 Oct 2011 12:51:36 -0700October 12, 2011 - Gold bullion prices have weathered the storm and are once again closing in on $1,700. And the gold bears are once again wiping egg off their faces.

Not so long ago they were wringing their hands in glee as the price edged downwards towards $1,500. If it fell below that Wall Street would declare victory over their nemesis once and for all. To their great dismay, it never came close to the magic number, but what if it had?

The fools in charge of economic policy are greatly threatened by gold and will do everything they can to scare people away from it. I have absolutely no doubt that the central banks in developed countries did their best to bring down the price of gold bullion, only to prove its resilience. Even if they had succeeded in dragging the price down lower, they wouldn’t have been able to hold it down for long.

The plain truth is that money cannot equate to wealth when you are free to print as much as you like. Douglas Adams gives us the perfect analogy in “The Restaurant at the End of the Universe.”

A spaceship carrying phone sanitizers, hairdressers, and countless other non-contributors purged from some advanced society crash lands on a planet and haplessly goes about trying to structure a society. Surrounded by dense forests they make leaves their currency, instantly making everyone unbelievably wealthy. Of course, all that “money” couldn’t buy a thing because it had no value.

It is often argued that gold bullion also has no real value, that its worth is just what we say it is. To a degree that is true. But mankind has been consistent in saying what gold is worth for centuries. Why gold’s value has transcended every social, political, economic, and technological change is a question for the philosophers. All that matters to me is that it has done so, and there is no reason to think it will not continue to do so.

While governments can play games with the price of gold bullion in the short term, they are powerless to change its worth.

]]>October 12, 2011 - Gold bullion prices have weathered the storm and are once again closing in on $1,700. And the gold bears are once again wiping egg off their faces.

Not so long ago they were wringing their hands in glee as the price edged downwards towards $1,500. If it fell below that Wall Street would declare victory over their nemesis once and for all. To their great dismay, it never came close to the magic number, but what if it had?

The fools in charge of economic policy are greatly threatened by gold and will do everything they can to scare people away from it. I have absolutely no doubt that the central banks in developed countries did their best to bring down the price of gold bullion, only to prove its resilience. Even if they had succeeded in dragging the price down lower, they wouldn’t have been able to hold it down for long.

The plain truth is that money cannot equate to wealth when you are free to print as much as you like. Douglas Adams gives us the perfect analogy in “The Restaurant at the End of the Universe.”

A spaceship carrying phone sanitizers, hairdressers, and countless other non-contributors purged from some advanced society crash lands on a planet and haplessly goes about trying to structure a society. Surrounded by dense forests they make leaves their currency, instantly making everyone unbelievably wealthy. Of course, all that “money” couldn’t buy a thing because it had no value.

It is often argued that gold bullion also has no real value, that its worth is just what we say it is. To a degree that is true. But mankind has been consistent in saying what gold is worth for centuries. Why gold’s value has transcended every social, political, economic, and technological change is a question for the philosophers. All that matters to me is that it has done so, and there is no reason to think it will not continue to do so.

While governments can play games with the price of gold bullion in the short term, they are powerless to change its worth.

]]>http://www.gold-bullion.org/bullion/prices-gold-bullion/#13184490963780http://www.gold-bullion.org/bullion/gold-bullionIRA/
Mon, 10 Oct 2011 12:13:07 -0700October 10, 2011 - If I had to name just one cause for the widespread investor complacency in these treacherous times it would be the disproportionately low rate of inflation. Even the true rate, which the majority of Americans are unaware of despite the pain in their wallets, is no where near the record. But we are living on borrowed time.

With so much wealth entrusted to funds over which they have no control it is not surprising that people are reluctant to accept that runaway inflation is a very real possibility. But the past few years put fear in the hearts of countless Americans approaching retirement.

People see that paper investments have become unusually volatile and they sense that gold offers the security they are seeking, but the markets seems to be telling a different story. That’s because there are two opposing forces at work: the government, which through its near-zero interest policy is pushing its citizens towards risky investments and ever deeper indebtedness, and the citizens who crave fiscal sanity.

Make no mistake about it, there are much more difficult times ahead. If it feels like the folks in charge don’t know what they are doing it is because they truly don’t. They have meddled in the natural order of the free market for so long that they have forgotten the basic laws. They keep right on pushing it with a rope hoping to change its course, but in the end the markets will self correct.

It would be wise for people to trust their instincts because it is not yet too late. There is a way to avert retirement disaster – the Gold IRA.

A Gold IRA is the perfect solution to retirement worries. Rather than entrust your wealth to the whims of Wall Street and some unknown fund manager, with a Gold IRA you make all of the investment decisions. And you can fortify your fund with gold bullion.

]]>October 10, 2011 - If I had to name just one cause for the widespread investor complacency in these treacherous times it would be the disproportionately low rate of inflation. Even the true rate, which the majority of Americans are unaware of despite the pain in their wallets, is no where near the record. But we are living on borrowed time.

With so much wealth entrusted to funds over which they have no control it is not surprising that people are reluctant to accept that runaway inflation is a very real possibility. But the past few years put fear in the hearts of countless Americans approaching retirement.

People see that paper investments have become unusually volatile and they sense that gold offers the security they are seeking, but the markets seems to be telling a different story. That’s because there are two opposing forces at work: the government, which through its near-zero interest policy is pushing its citizens towards risky investments and ever deeper indebtedness, and the citizens who crave fiscal sanity.

Make no mistake about it, there are much more difficult times ahead. If it feels like the folks in charge don’t know what they are doing it is because they truly don’t. They have meddled in the natural order of the free market for so long that they have forgotten the basic laws. They keep right on pushing it with a rope hoping to change its course, but in the end the markets will self correct.

It would be wise for people to trust their instincts because it is not yet too late. There is a way to avert retirement disaster – the Gold IRA.

A Gold IRA is the perfect solution to retirement worries. Rather than entrust your wealth to the whims of Wall Street and some unknown fund manager, with a Gold IRA you make all of the investment decisions. And you can fortify your fund with gold bullion.

]]>http://www.gold-bullion.org/bullion/gold-bullionIRA/#13182739873776http://www.gold-bullion.org/bullion/gold-bullion-goldstandard/
Fri, 07 Oct 2011 11:43:05 -0700October 07, 2011 – Forty-five years ago Alan Greenspan wrote: “In the absence of a gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value.” That is becoming ever more apparent today despite the efforts of central banks around the globe to breathe some life back into their fiat currencies.

So how do we explain the lingering pullback in the price of gold bullion? It certainly cannot be that gold has somehow lost its luster as a safe haven. I believe it is merely in a holding pattern while investors rethink their strategies in the face of unprecedented structural changes in the global economy.

The first step for big investors is to maximize liquidity, and for the short term the dollar is as good as anything else. But that will be only temporary. The liquidity of physical gold rivals that of cash and in terms of wealth preservation there is no contest. No matter how great their distaste for gold may be, investors are rapidly realizing that it is the only game in town.

China is well aware of the growing mistrust of all paper assets and it is leveraging that sentiment in its five-year plan to dominate the global monetary system. When the Pan Asia Gold Exchange (PAGE) opens next year it will trade strictly in physical gold based on the renminbi. While western nations continue blindly following the fool’s gold of fiat money, China is taking steps to firmly link its currency to real gold.

The plain truth is that western economies have dug themselves in too deeply with deficit spending to put up much of a fight. “It will be a while before there’s serious consideration [in the west] for currency reform associated with a restructuring of the worldwide financial system,” Ron Paul says in End the Fed. “But the day is fast approaching when it won’t be out of choice but out of necessity that we will have to face this issue.”

We would all do well to heed that warning and to follow China’s lead. For us as individuals that means buy gold bullion while the price is right.

]]>October 07, 2011 – Forty-five years ago Alan Greenspan wrote: “In the absence of a gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value.” That is becoming ever more apparent today despite the efforts of central banks around the globe to breathe some life back into their fiat currencies.

So how do we explain the lingering pullback in the price of gold bullion? It certainly cannot be that gold has somehow lost its luster as a safe haven. I believe it is merely in a holding pattern while investors rethink their strategies in the face of unprecedented structural changes in the global economy.

The first step for big investors is to maximize liquidity, and for the short term the dollar is as good as anything else. But that will be only temporary. The liquidity of physical gold rivals that of cash and in terms of wealth preservation there is no contest. No matter how great their distaste for gold may be, investors are rapidly realizing that it is the only game in town.

China is well aware of the growing mistrust of all paper assets and it is leveraging that sentiment in its five-year plan to dominate the global monetary system. When the Pan Asia Gold Exchange (PAGE) opens next year it will trade strictly in physical gold based on the renminbi. While western nations continue blindly following the fool’s gold of fiat money, China is taking steps to firmly link its currency to real gold.

The plain truth is that western economies have dug themselves in too deeply with deficit spending to put up much of a fight. “It will be a while before there’s serious consideration [in the west] for currency reform associated with a restructuring of the worldwide financial system,” Ron Paul says in End the Fed. “But the day is fast approaching when it won’t be out of choice but out of necessity that we will have to face this issue.”

We would all do well to heed that warning and to follow China’s lead. For us as individuals that means buy gold bullion while the price is right.

]]>http://www.gold-bullion.org/bullion/gold-bullion-goldstandard/#13180129853772http://www.gold-bullion.org/bullion/Great-Gold-Standard/
Tue, 27 Sep 2011 12:25:08 -0700September 27, 2011 - One of the most insightful statements within the White House was when President Hoover told Franklin Delano Roosevelt that gold is stored because governments cannot be confided in. This occurred in 1933 when, conversely, the Emergency Banking Act was enacted declaring that all Americans were obligated to exchange their gold coins, bullion, and certificates into the greenback. Whereas the Act effectively ceased the efflux of gold throughout the Great Depression, it did not alter the confidence of gold bugs, folks who are eternally convinced in gold's solidity as the foundation of prosperity.

Discerning gold’s history is vital before one makes the move to invest in it. It is one like no other asset enjoys, one that still maintains an exclusive power on its inherent supply and demand at present. Gold is still a mogul to gold bugs, but even monarchs have experienced collapses, as gold did which is why it is imperative to analyze so that its outlook can be weighed effectively.

Five Centuries of Adoration

Gold has always been an appealing metal with its amalgamation of radiance, manipulability, solidity, and rareness and has enthralled the human race as no other metal has. Gold is so solid that one ton of it can be crammed into a cubic foot.

Gold’s passion began as source of worship as the earliest sacred sites will reveal. Nowadays, its main purpose lies in the production of jewelry.

Its monetary utility originated as far back as 700 B.C. when it was turned into coins making it more useful, but had to be weighed and examined for purity when establishing exchanges.

There were still problems with gold coins, though, because a widespread routine was to snip these somewhat uneven coins to amass enough gold that could be then liquefied into bullion. England’s Great Recoinage in 1696 pioneered a technology that mechanized the manufacturing coins bringing to a close the snipping practice.

Given that it could not constantly depend on extra provisions from the earth, the supply of gold extended exclusively through deflation, trade, embezzlement, or debasement.

The original gold rush came during the discovery of America in the 15th century. Spain’s stolen treasures from the New World increased Europe's stock of gold over five times in the 16th century. Consequent gold rushes in the Americas, Australia, and South Africa occurred in the 19th century.

By means of debt mechanisms issued by private parties was how Europe paved the way for paper money. Whereas gold coins and bullion continued to control Europe’s monetary system, it was not until the 18th century that paper money began to lead. The scuffle between paper money and gold would ultimately incite the beginning of a gold standard. Read more in The Great Gold Standard Pt. II

]]>September 27, 2011 - One of the most insightful statements within the White House was when President Hoover told Franklin Delano Roosevelt that gold is stored because governments cannot be confided in. This occurred in 1933 when, conversely, the Emergency Banking Act was enacted declaring that all Americans were obligated to exchange their gold coins, bullion, and certificates into the greenback. Whereas the Act effectively ceased the efflux of gold throughout the Great Depression, it did not alter the confidence of gold bugs, folks who are eternally convinced in gold's solidity as the foundation of prosperity.

Discerning gold’s history is vital before one makes the move to invest in it. It is one like no other asset enjoys, one that still maintains an exclusive power on its inherent supply and demand at present. Gold is still a mogul to gold bugs, but even monarchs have experienced collapses, as gold did which is why it is imperative to analyze so that its outlook can be weighed effectively.

Five Centuries of Adoration

Gold has always been an appealing metal with its amalgamation of radiance, manipulability, solidity, and rareness and has enthralled the human race as no other metal has. Gold is so solid that one ton of it can be crammed into a cubic foot.

Gold’s passion began as source of worship as the earliest sacred sites will reveal. Nowadays, its main purpose lies in the production of jewelry.

Its monetary utility originated as far back as 700 B.C. when it was turned into coins making it more useful, but had to be weighed and examined for purity when establishing exchanges.

There were still problems with gold coins, though, because a widespread routine was to snip these somewhat uneven coins to amass enough gold that could be then liquefied into bullion. England’s Great Recoinage in 1696 pioneered a technology that mechanized the manufacturing coins bringing to a close the snipping practice.

Given that it could not constantly depend on extra provisions from the earth, the supply of gold extended exclusively through deflation, trade, embezzlement, or debasement.

The original gold rush came during the discovery of America in the 15th century. Spain’s stolen treasures from the New World increased Europe's stock of gold over five times in the 16th century. Consequent gold rushes in the Americas, Australia, and South Africa occurred in the 19th century.

By means of debt mechanisms issued by private parties was how Europe paved the way for paper money. Whereas gold coins and bullion continued to control Europe’s monetary system, it was not until the 18th century that paper money began to lead. The scuffle between paper money and gold would ultimately incite the beginning of a gold standard.

]]>http://www.gold-bullion.org/bullion/Great-Gold-Standard/#13171515083762http://www.gold-bullion.org/bullion/goldbullion-pricemarket/
Mon, 19 Sep 2011 12:55:56 -0700September 19, 2011 - Gold bullion prices are once again flying in the face of common sense. The Greek crisis is stealing all the headlines and again there is panic on the Street, even as the next pronouncement of the Great Bearded Hope draws nigh.

Of course there’s lots of other ugly news. The Economic Cycle Research Institute’s (ECRI) growth index keeps heading deeper into negative territory, heightening the recession risk. Jobless claims are on the rise – 428,000 more are now out of work – and retail sales have stalled after a brief revival ushering in a new school year. Income has fallen back to where it was 15 years ago and over 15% of Americans are now living in poverty. Any doubts as to why consumer confidence is stuck at recession levels?

How is it possible that the price of gold bullion could fall under these conditions? Actually it hasn’t. Gold is exchanged for dollars and when panic takes over the mob always heads for the shelter it knows, like horses running into a burning barn. They sell off everything and stuff their mattresses full of greenbacks, which, by the way, is the only thing they are better for than gold.

A lot of the current dollar demand has come from Europe, where the banks are trying to ease up a dollar denominated liquidity crisis, and that brings up an interesting question. Suppose the world were to agree that moving away from the dollar standard is too costly and too risky right now so they set the value of the dollar to some arbitrary elevated number. After all, would that be any different than how the price of gold bullion is reached?

There’s one huge difference: gold sets the price of currency, not the other way around. We saw in Switzerland what happens when a currency gets overvalued – inflation rushes into the source of the currency. If the world were to overvalue the dollar by 10% prices here would instantly shoot up by the same amount, wiping out demand for American products abroad and crushing what little hope remains for recovery.

So as always, the Fed will do whatever it can to make sure the dollar stays on the skids. The dollar will fall, gold will rise, and before long folks will once again start pulling their bucks out of the mattress to buy gold bullion.

]]>September 19, 2011 - Gold bullion prices are once again flying in the face of common sense. The Greek crisis is stealing all the headlines and again there is panic on the Street, even as the next pronouncement of the Great Bearded Hope draws nigh.

Of course there’s lots of other ugly news. The Economic Cycle Research Institute’s (ECRI) growth index keeps heading deeper into negative territory, heightening the recession risk. Jobless claims are on the rise – 428,000 more are now out of work – and retail sales have stalled after a brief revival ushering in a new school year. Income has fallen back to where it was 15 years ago and over 15% of Americans are now living in poverty. Any doubts as to why consumer confidence is stuck at recession levels?

How is it possible that the price of gold bullion could fall under these conditions? Actually it hasn’t. Gold is exchanged for dollars and when panic takes over the mob always heads for the shelter it knows, like horses running into a burning barn. They sell off everything and stuff their mattresses full of greenbacks, which, by the way, is the only thing they are better for than gold.

A lot of the current dollar demand has come from Europe, where the banks are trying to ease up a dollar denominated liquidity crisis, and that brings up an interesting question. Suppose the world were to agree that moving away from the dollar standard is too costly and too risky right now so they set the value of the dollar to some arbitrary elevated number. After all, would that be any different than how the price of gold bullion is reached?

There’s one huge difference: gold sets the price of currency, not the other way around. We saw in Switzerland what happens when a currency gets overvalued – inflation rushes into the source of the currency. If the world were to overvalue the dollar by 10% prices here would instantly shoot up by the same amount, wiping out demand for American products abroad and crushing what little hope remains for recovery.

So as always, the Fed will do whatever it can to make sure the dollar stays on the skids. The dollar will fall, gold will rise, and before long folks will once again start pulling their bucks out of the mattress to buy gold bullion.

]]>http://www.gold-bullion.org/bullion/goldbullion-pricemarket/#13164621563755http://www.gold-bullion.org/bullion/why-gold-bullion/
Fri, 16 Sep 2011 13:31:04 -0700September 16, 2011 – Thanks to Lance Roberts in Seeking Alpha for this little statistic that tells us why gold bullion still has a long ways to go: “The economy is currently requiring roughly $4 of total credit market debt to create $1 of economic growth.” Chew on that a minute. That’s akin to running the economy on payday loans.

Anyone who has ever fallen into the payday loan trap will tell you there is but one way out – clear away the excess debt that got them into it. And most will say that means doing without many things they once thought were necessities for quite some time.

That’s why nothing the Fed has done to date has had any real effect – they are treating the economic crisis as just another downside of the business cycle and that’s exactly the opposite of what they should be doing. Keynesian policy has reached its limit and we now have to unwind the damage done.

The magnitude of the debt deleveraging required to return to a productive economy is staggering – almost $30 trillion. But it must happen and everything the government does trying to avoid it will only prolong the time it will take and elevate the misery of getting there. At best we can expect their efforts will create “an economy plagued by more frequent recessionary spats, lower equity market returns, and a stagflationary environment as wages remain suppressed and the costs of living rise.”

The path of least resistance is to stop shooting Novocain into the economy and let it begin to heal on its own. But that’s not what Americans want to hear because we are accustomed to being comfortably numb. But eventually we will come to understand that proper treatment is not a matter of choice and realize that it is best to just get it over with.

I don’t know how much further downhill we have to go, but it will be a relatively quick trip before we hit the bottom. One thing is certain, however: It will be a slow and grueling climb back up and we have a long ways to go before the dollar can again hold its own against gold bullion. The way things look today, I seriously doubt we will ever get there.

]]>September 16, 2011 – Thanks to Lance Roberts in Seeking Alpha for this little statistic that tells us why gold bullion still has a long ways to go: “The economy is currently requiring roughly $4 of total credit market debt to create $1 of economic growth.” Chew on that a minute. That’s akin to running the economy on payday loans.

Anyone who has ever fallen into the payday loan trap will tell you there is but one way out – clear away the excess debt that got them into it. And most will say that means doing without many things they once thought were necessities for quite some time.

That’s why nothing the Fed has done to date has had any real effect – they are treating the economic crisis as just another downside of the business cycle and that’s exactly the opposite of what they should be doing. Keynesian policy has reached its limit and we now have to unwind the damage done.

The magnitude of the debt deleveraging required to return to a productive economy is staggering – almost $30 trillion. But it must happen and everything the government does trying to avoid it will only prolong the time it will take and elevate the misery of getting there. At best we can expect their efforts will create “an economy plagued by more frequent recessionary spats, lower equity market returns, and a stagflationary environment as wages remain suppressed and the costs of living rise.”

The path of least resistance is to stop shooting Novocain into the economy and let it begin to heal on its own. But that’s not what Americans want to hear because we are accustomed to being comfortably numb. But eventually we will come to understand that proper treatment is not a matter of choice and realize that it is best to just get it over with.

I don’t know how much further downhill we have to go, but it will be a relatively quick trip before we hit the bottom. One thing is certain, however: It will be a slow and grueling climb back up and we have a long ways to go before the dollar can again hold its own against gold bullion. The way things look today, I seriously doubt we will ever get there.

]]>http://www.gold-bullion.org/bullion/why-gold-bullion/#13162050643751http://www.gold-bullion.org/bullion/gold-bullion-market/
Wed, 14 Sep 2011 12:35:36 -0700September 14, 2011 – While the gold bullion market seems to be lackadaisically hanging around waiting for the Fed’s next miracle I’d like to clear up one little misconception: the government can’t fix problems, it can only create them.

Sure, the government can “create” jobs, but without fail whenever it has done so in the past each job created cost far more than the person who got it would ever earn. It would have been a lot cheaper just to hand out money to the unemployed.

Structural unemployment cannot be cured by incentives to businesses. To them the long-term unemployed are lepers, contagion best exiled to some distant place where they will be somebody else’s problem. The myopia of the business world when it comes to personnel is legendary in the best of times. In the worst of times business gets downright blind.

In times like these businesses can pick and choose who they hire. A company may need a good sound pickup truck to haul stuff around but it will buy a Lamborghini if it can get it for the same price. It’s absurd, but they’ll do it every time. Over a prolonged period of unemployment companies build up highly overqualified and underpaid workforces teeming with discontentment and disloyalty – hardly the recipe for sustained success. But for a while, profits look great.

It’s the same mentality that shoves senior workers out the back door as fresh meat is brought in the front. The wisdom, insight, and intuition that come only with experience is vastly undervalued in America today, and that explains a lot.

None-the-less, we can’t blame business. Business simply reflects society as a whole - it has become lazy and dependent, always on the lookout for the next quick fix. Vision no longer extends beyond the horizon, it ends at the bottom line. But even the bottom line is an illusion, trumped up figures that put a short-term gloss on a dismal future.

And we can’t blame the government. We have met the enemy and he is us. We set our own standards, and we tolerated anything as long as they were met. If our government is not for the people it is still of the people and by the people, so we have nobody else to blame.

Here’s my suggestion: Do one last selfish thing and invest in gold bullion, then extend your hand to a neighbor. You’ll be prepared for hard times while together we rebuild America.

]]>September 14, 2011 – While the gold bullion market seems to be lackadaisically hanging around waiting for the Fed’s next miracle I’d like to clear up one little misconception: the government can’t fix problems, it can only create them.

Sure, the government can “create” jobs, but without fail whenever it has done so in the past each job created cost far more than the person who got it would ever earn. It would have been a lot cheaper just to hand out money to the unemployed.

Structural unemployment cannot be cured by incentives to businesses. To them the long-term unemployed are lepers, contagion best exiled to some distant place where they will be somebody else’s problem. The myopia of the business world when it comes to personnel is legendary in the best of times. In the worst of times business gets downright blind.

In times like these businesses can pick and choose who they hire. A company may need a good sound pickup truck to haul stuff around but it will buy a Lamborghini if it can get it for the same price. It’s absurd, but they’ll do it every time. Over a prolonged period of unemployment companies build up highly overqualified and underpaid workforces teeming with discontentment and disloyalty – hardly the recipe for sustained success. But for a while, profits look great.

It’s the same mentality that shoves senior workers out the back door as fresh meat is brought in the front. The wisdom, insight, and intuition that come only with experience is vastly undervalued in America today, and that explains a lot.

None-the-less, we can’t blame business. Business simply reflects society as a whole - it has become lazy and dependent, always on the lookout for the next quick fix. Vision no longer extends beyond the horizon, it ends at the bottom line. But even the bottom line is an illusion, trumped up figures that put a short-term gloss on a dismal future.

And we can’t blame the government. We have met the enemy and he is us. We set our own standards, and we tolerated anything as long as they were met. If our government is not for the people it is still of the people and by the people, so we have nobody else to blame.

Here’s my suggestion: Do one last selfish thing and invest in gold bullion, then extend your hand to a neighbor. You’ll be prepared for hard times while together we rebuild America.

]]>http://www.gold-bullion.org/bullion/gold-bullion-market/#13160289363747http://www.gold-bullion.org/bullion/US-recession/
Tue, 13 Sep 2011 14:23:17 -0700September 13, 2011 - Apprehension about the U.S. economy en route towards a recession just as the European debt crisis was getting more intense and the eurozone's economic indicators were sinking made world stock markets take a beating since last Monday.

America’s failure to add any new jobs in August triggered European and Asian stock markets to fall severely on.

Adding to the trouble was the news from Europe which was just as ominous. Wall Street, which was closed last Monday due to the Labor Day holiday, contended for disaster Tuesday after the yields in Greece, Italy, and Spain climbed suddenly against those of Germany, whose bonds are generally acknowledged as a safe haven.

For the fifth consecutive month retail sales in the 17-nation eurozone accelerated abruptly in July albeit a survey of the services sector last Monday disclosing a gradual decrease across the continent.

Contrasting with the manufacturing sector, the purchasing managers' index for the Eurozone exhibited minor growth. That will increase distress on the European Central Bank to maintain interest rates on hold when it convenes this week.

David Kotok, chairman and chief investment officer at Cumberland Advisers said, "There's so much uncertainty, so much fear, that investors don't know what to do. I don't remember the last time stocks were so cheap and nobody wanted them."

Investors were also taken aback by indications that the Italian government's promise to its austerity program is fluctuating. Prime Minister Silvio Berlusconi's government has done an about face on some deficit-cutting procedures, provoking EU officials to beseech Italy in adhering to its committed plan.

The difference in interest rates among the Greek and benchmark German 10-year bonds, known as the spread, ascended to new records last Monday, topping 17.3 percentage points. Profits on the Greek bonds exceeded 18 percent.

The designated chief of the European Central Bank, Mario Draghi, told a forum in Paris that amid the common currency's problems was a deficiency of synchronized fiscal policies and that the solution would be for more assimilation.

He discharged the idea of eurobonds which encompasses debt issued cooperatively by the eurozone countries. Some have claimed this would benefit weaker countries in borrowing more easily because they wouldn't have to pay such great interest rates. But unwavering countries like Germany would likely see their rates increase.

In its place, Draghi recommended that the eurozone ought to implement rules that would entail additional budget restraint.

Amongst concerns the banks would need to raise new capital, revived apprehensions over the eurozone debt crisis also added to the collapse in financial stocks. Societe Generale in Paris lost 8.6 percent, while Deutsche bank closed down 8.9 percent in Frankfurt.

America’s unemployment critical situation has prompted President Barack Obama to schedule a major speech Thursday night to propose steps to foment hiring. Meanwhile, traders returning from the U.S. holiday weekend will not have much to restore.

Job numbers for August were far less than economists' already halfhearted outlooks for 93,000 new U.S. jobs and revived anxieties that the U.S. comeback is not only decelerating but actually uncoiling. U.S. hiring numbers for June and July were also revised down, only building up the despair.

]]>September 13, 2011 - Apprehension about the U.S. economy en route towards a recession just as the European debt crisis was getting more intense and the eurozone's economic indicators were sinking made world stock markets take a beating since last Monday.

America’s failure to add any new jobs in August triggered European and Asian stock markets to fall severely on.

Adding to the trouble was the news from Europe which was just as ominous. Wall Street, which was closed last Monday due to the Labor Day holiday, contended for disaster Tuesday after the yields in Greece, Italy, and Spain climbed suddenly against those of Germany, whose bonds are generally acknowledged as a safe haven.

For the fifth consecutive month retail sales in the 17-nation eurozone accelerated abruptly in July albeit a survey of the services sector last Monday disclosing a gradual decrease across the continent.

Contrasting with the manufacturing sector, the purchasing managers' index for the Eurozone exhibited minor growth. That will increase distress on the European Central Bank to maintain interest rates on hold when it convenes this week.

David Kotok, chairman and chief investment officer at Cumberland Advisers said, "There's so much uncertainty, so much fear, that investors don't know what to do. I don't remember the last time stocks were so cheap and nobody wanted them."

Investors were also taken aback by indications that the Italian government's promise to its austerity program is fluctuating. Prime Minister Silvio Berlusconi's government has done an about face on some deficit-cutting procedures, provoking EU officials to beseech Italy in adhering to its committed plan.

The difference in interest rates among the Greek and benchmark German 10-year bonds, known as the spread, ascended to new records last Monday, topping 17.3 percentage points. Profits on the Greek bonds exceeded 18 percent.

The designated chief of the European Central Bank, Mario Draghi, told a forum in Paris that amid the common currency's problems was a deficiency of synchronized fiscal policies and that the solution would be for more assimilation.

He discharged the idea of eurobonds which encompasses debt issued cooperatively by the eurozone countries. Some have claimed this would benefit weaker countries in borrowing more easily because they wouldn't have to pay such great interest rates. But unwavering countries like Germany would likely see their rates increase.

In its place, Draghi recommended that the eurozone ought to implement rules that would entail additional budget restraint.

Amongst concerns the banks would need to raise new capital, revived apprehensions over the eurozone debt crisis also added to the collapse in financial stocks. Societe Generale in Paris lost 8.6 percent, while Deutsche bank closed down 8.9 percent in Frankfurt.

America’s unemployment critical situation has prompted President Barack Obama to schedule a major speech Thursday night to propose steps to foment hiring. Meanwhile, traders returning from the U.S. holiday weekend will not have much to restore.

Job numbers for August were far less than economists' already halfhearted outlooks for 93,000 new U.S. jobs and revived anxieties that the U.S. comeback is not only decelerating but actually uncoiling. U.S. hiring numbers for June and July were also revised down, only building up the despair.

]]>http://www.gold-bullion.org/bullion/US-recession/#13159489973744http://www.gold-bullion.org/bullion/safe-haven-investments/
Wed, 07 Sep 2011 11:45:32 -0700September 07, 2011 – You couldn’t ask for a clearer, more powerful demonstration of the superiority of gold bullion over currency as a store of wealth than the Swiss have given the world over the past two and a half weeks. And yet a great many investors failed to pay any heed.

The Swiss franc was the last bastion of fiat money, a solid currency backed by stringent fiscal responsibility. As a medium of exchange it had few, if any, rivals. But the Swiss economy is relatively tiny, making its currency highly vulnerable to foreign speculation. So when investment demand drove the price of the franc up 17% from the beginning of June to the first week of August, the Swiss central bank got fed up.

The Swiss treasury slammed on the brakes, swamping demand with vast amounts of newly printed bills. Then, to make sure the message got across, they announced that they will cap the price of the franc at 1.2 euro. Poof! In just three days the franc plunged 8.5% against the dollar.

You would think that all those investors would have learned their lesson, but a great many retreated from the franc to – you guessed it, the dollar. Realizing that they got burned by the model of sound currency they started selling off gold to recoup their losses in greenbacks. That bears repeating.

Seeing that a strong currency was a poor store of their wealth, they exchanged their holdings in the one true safe haven for one of the world’s most troubled currencies.

So once again the gold bullion price got yanked back from a new record high. The one good thing about such insane behavior, however, is that the market will quickly shrug it off. The wide support of strong fundamentals will quickly overpower irrational resistance and keep the gold rally going.

There will always be some who stubbornly declare “that’s my strategy and I’m sticking to it,” even when presented with irrefutable evidence that the Dow has begun a cyclical bear while gold has entered a super-cycle.

Those left hopelessly stranded on the platform will watch the wise investors who bought gold bullion smiling and waving to them as the last train leaves the station.

]]>September 07, 2011 – You couldn’t ask for a clearer, more powerful demonstration of the superiority of gold bullion over currency as a store of wealth than the Swiss have given the world over the past two and a half weeks. And yet a great many investors failed to pay any heed.

The Swiss franc was the last bastion of fiat money, a solid currency backed by stringent fiscal responsibility. As a medium of exchange it had few, if any, rivals. But the Swiss economy is relatively tiny, making its currency highly vulnerable to foreign speculation. So when investment demand drove the price of the franc up 17% from the beginning of June to the first week of August, the Swiss central bank got fed up.

The Swiss treasury slammed on the brakes, swamping demand with vast amounts of newly printed bills. Then, to make sure the message got across, they announced that they will cap the price of the franc at 1.2 euro. Poof! In just three days the franc plunged 8.5% against the dollar.

You would think that all those investors would have learned their lesson, but a great many retreated from the franc to – you guessed it, the dollar. Realizing that they got burned by the model of sound currency they started selling off gold to recoup their losses in greenbacks. That bears repeating.

Seeing that a strong currency was a poor store of their wealth, they exchanged their holdings in the one true safe haven for one of the world’s most troubled currencies.

So once again the gold bullion price got yanked back from a new record high. The one good thing about such insane behavior, however, is that the market will quickly shrug it off. The wide support of strong fundamentals will quickly overpower irrational resistance and keep the gold rally going.

There will always be some who stubbornly declare “that’s my strategy and I’m sticking to it,” even when presented with irrefutable evidence that the Dow has begun a cyclical bear while gold has entered a super-cycle.

Those left hopelessly stranded on the platform will watch the wise investors who bought gold bullion smiling and waving to them as the last train leaves the station.

]]>http://www.gold-bullion.org/bullion/safe-haven-investments/#13154211323738http://www.gold-bullion.org/bullion/goldbullion-investment-advice/
Fri, 02 Sep 2011 11:54:32 -0700September 02, 2011 – If there ever was a truism – and it applies to buying gold bullion as much as anything else – it’s that you can’t get something for nothing. Yet it is that most basic of human desires and it has brought us to where we are today.

Quite simply, you cannot borrow yourself into a better tomorrow. All debt comes with a price - everything you acquire through debt today reduces your future wealth. People are finally coming to that realization, and it is a burr under the saddle of the orchestrators of the great American pyramid scheme.

The hustlers need the little guy in the game, so naturally they have to let us win a few pots to build up the fever. Like carnival hucksters they need us to believe again so they can wring the last penny out of us. Without our money there can be no game.

Every one of us has probably spent five bucks to “win” a two bit kewpie doll at some point in our lives, but did we learn anything from the lesson? If we did, then why are we still attracted to the prospect of a free lunch?

Investing in general was never meant to be gambling, but rather a means to create wealth through intelligent support of superior ideas. But the concept has been irrevocably corrupted to the point where failure is rewarded equally with success. It’s a rigged game that strongly favors the house.

Buying gold bullion is not a very good way to get something for nothing. Speculators have been trying to do that for centuries and there have been far more losers than winners. Gold doesn’t make money, because gold is money. And that’s why gold endures while fiat money does not.

Any medium of exchange that can make more of itself – be it through simple interest or Keynesian multipliers – must eventually devalue itself to zero. Like any other pyramid scheme, the way to win is not to play.

Call it what you wish, but buying gold bullion is the one winning strategy for the fiat money game.

]]>September 02, 2011 – If there ever was a truism – and it applies to buying gold bullion as much as anything else – it’s that you can’t get something for nothing. Yet it is that most basic of human desires and it has brought us to where we are today.

Quite simply, you cannot borrow yourself into a better tomorrow. All debt comes with a price - everything you acquire through debt today reduces your future wealth. People are finally coming to that realization, and it is a burr under the saddle of the orchestrators of the great American pyramid scheme.

The hustlers need the little guy in the game, so naturally they have to let us win a few pots to build up the fever. Like carnival hucksters they need us to believe again so they can wring the last penny out of us. Without our money there can be no game.

Every one of us has probably spent five bucks to “win” a two bit kewpie doll at some point in our lives, but did we learn anything from the lesson? If we did, then why are we still attracted to the prospect of a free lunch?

Investing in general was never meant to be gambling, but rather a means to create wealth through intelligent support of superior ideas. But the concept has been irrevocably corrupted to the point where failure is rewarded equally with success. It’s a rigged game that strongly favors the house.

Buying gold bullion is not a very good way to get something for nothing. Speculators have been trying to do that for centuries and there have been far more losers than winners. Gold doesn’t make money, because gold is money. And that’s why gold endures while fiat money does not.

Any medium of exchange that can make more of itself – be it through simple interest or Keynesian multipliers – must eventually devalue itself to zero. Like any other pyramid scheme, the way to win is not to play.

Call it what you wish, but buying gold bullion is the one winning strategy for the fiat money game.

]]>http://www.gold-bullion.org/bullion/goldbullion-investment-advice/#13149896723734http://www.gold-bullion.org/bullion/wallstreet-propaganda/
Wed, 31 Aug 2011 12:08:23 -0700August 31, 2011 – Gold bullion prices are resisting Wall Street’s feel good downward pressure, a sure sign that fewer and fewer people are buying into the propaganda every day. But that is just sour grapes; the citizenry thinks the government should be taking care of them and not the fat cats on Wall Street.

In the first place, stop blaming the government – they are just following orders from the Fed. You can’t lay it on the Fed either, because they are a fully dependent subsidiary of the banking industry. And we all know that the mega banks are there for our protection.

Now that we can accept the Fed’s benevolence, let’s take a peek at the August minutes. “Most members thought that it could contribute importantly to better outcomes in terms of the Committee’s dual mandate of maximum employment and price stability.” You have to feel good about that.

Just how a central bank can do anything to maximize unemployment may seem mysterious, but that is only because we are too ignorant to understand the Fed’s complex machinations. Fortunately they had the foresight to know that we little people would be frightened out of our wits if they were forced to explain what they are doing, so most of what they do goes on under a burqa of secrecy.

Just as long as the Fed can “contribute importantly to better outcomes” we should all be comforted. They have done such a good job of it lately. And we should be greatly encouraged that “a few members felt that recent economic developments justified a more substantial move.” Of course they agree that calling it QE3 could prove unsettling to the growing number of rabble rousers out there.

So the problem becomes one of sneaking it past us, for our own good, of course. They could, for instance sell off bills that are about to mature and then buy up more with long maturities. Abra cadabra – free money! A bunch of new debt has been monetized with just a few ticks on the balance sheet.

Who needs gold when money is free? Well, the problem with free money is that it is worth what was paid. That reality is settling in. Whispers of negative interest should make even the most gullible shake their heads in disbelief. The Fed, locked in a losing battle, is bound to run amok as it struggles to justify its existence.

The Wall Street Band will keep playing as the ship goes down, but the wise and wary will long since have taken shelter in gold bullion.

]]>August 31, 2011 – Gold bullion prices are resisting Wall Street’s feel good downward pressure, a sure sign that fewer and fewer people are buying into the propaganda every day. But that is just sour grapes; the citizenry thinks the government should be taking care of them and not the fat cats on Wall Street.

In the first place, stop blaming the government – they are just following orders from the Fed. You can’t lay it on the Fed either, because they are a fully dependent subsidiary of the banking industry. And we all know that the mega banks are there for our protection.

Now that we can accept the Fed’s benevolence, let’s take a peek at the August minutes. “Most members thought that it could contribute importantly to better outcomes in terms of the Committee’s dual mandate of maximum employment and price stability.” You have to feel good about that.

Just how a central bank can do anything to maximize unemployment may seem mysterious, but that is only because we are too ignorant to understand the Fed’s complex machinations. Fortunately they had the foresight to know that we little people would be frightened out of our wits if they were forced to explain what they are doing, so most of what they do goes on under a burqa of secrecy.

Just as long as the Fed can “contribute importantly to better outcomes” we should all be comforted. They have done such a good job of it lately. And we should be greatly encouraged that “a few members felt that recent economic developments justified a more substantial move.” Of course they agree that calling it QE3 could prove unsettling to the growing number of rabble rousers out there.

So the problem becomes one of sneaking it past us, for our own good, of course. They could, for instance sell off bills that are about to mature and then buy up more with long maturities. Abra cadabra – free money! A bunch of new debt has been monetized with just a few ticks on the balance sheet.

Who needs gold when money is free? Well, the problem with free money is that it is worth what was paid. That reality is settling in. Whispers of negative interest should make even the most gullible shake their heads in disbelief. The Fed, locked in a losing battle, is bound to run amok as it struggles to justify its existence.

The Wall Street Band will keep playing as the ship goes down, but the wise and wary will long since have taken shelter in gold bullion.

]]>http://www.gold-bullion.org/bullion/wallstreet-propaganda/#13148177033730http://www.gold-bullion.org/bullion/goldbullion-currenttrend/
Mon, 29 Aug 2011 14:27:47 -0700August 29, 2011 – Once again the price of gold bullion started the day out with a precipitous drop of some $35 before starting its daily gyrations. And once again the stock market is coming on strong. This of course is to be expected, says the Wall Street Journal, “with favorable economic data helping investors mirror the positive tone in European markets.” Come again?

About the only encouraging news I have heard lately is that consumer spending was strongly up in July, and I take that with the proverbial grain of salt. Until I see several consecutive months of increased spending I’ll continue to chalk that up to back-to-school and long-postponed necessities. Until the housing market gets back on its feet I don’t see the rest of the economy going anywhere.

As for the positive tone in Europe, somebody’s not paying attention because that time bomb is ticking louder than ever. Any day now Germany could succumb to domestic pressure and pull the plug on future bailouts. The eurozone is far from stable and could implode at any moment.

Even more disquieting, however, is our government’s fiscal year is drawing to a close and so far there has been no sign of a budget for next year. Somehow I fail to see Congress rallying to the cause, putting aside their petty differences and putting together a budget we all can live with. Instead I see endless bickering as our country stumbles forward living hand to mouth on stopgap stipends and losing every last shred of credibility in the process.

So pardon me if I don’t get all excited about this week’s spate of economic indicators. And I don’t really care about the Fed’s next meeting in the third week of September. As Bob Dylan once penned, “you don’t need a weatherman to know which way the wind blows.”

All the numbers amount to are tiny historical snapshots, relatively useless compared to a wide- screen, real-time, pull-your-head-out-of-the-sand look about. You can make up all sorts of excuses for volatility but the real world is driving gold bullion prices only higher.

]]>August 29, 2011 – Once again the price of gold bullion started the day out with a precipitous drop of some $35 before starting its daily gyrations. And once again the stock market is coming on strong. This of course is to be expected, says the Wall Street Journal, “with favorable economic data helping investors mirror the positive tone in European markets.” Come again?

About the only encouraging news I have heard lately is that consumer spending was strongly up in July, and I take that with the proverbial grain of salt. Until I see several consecutive months of increased spending I’ll continue to chalk that up to back-to-school and long-postponed necessities. Until the housing market gets back on its feet I don’t see the rest of the economy going anywhere.

As for the positive tone in Europe, somebody’s not paying attention because that time bomb is ticking louder than ever. Any day now Germany could succumb to domestic pressure and pull the plug on future bailouts. The eurozone is far from stable and could implode at any moment.

Even more disquieting, however, is our government’s fiscal year is drawing to a close and so far there has been no sign of a budget for next year. Somehow I fail to see Congress rallying to the cause, putting aside their petty differences and putting together a budget we all can live with. Instead I see endless bickering as our country stumbles forward living hand to mouth on stopgap stipends and losing every last shred of credibility in the process.

So pardon me if I don’t get all excited about this week’s spate of economic indicators. And I don’t really care about the Fed’s next meeting in the third week of September. As Bob Dylan once penned, “you don’t need a weatherman to know which way the wind blows.”

All the numbers amount to are tiny historical snapshots, relatively useless compared to a wide- screen, real-time, pull-your-head-out-of-the-sand look about. You can make up all sorts of excuses for volatility but the real world is driving gold bullion prices only higher.

]]>http://www.gold-bullion.org/bullion/goldbullion-currenttrend/#13146532673726http://www.gold-bullion.org/bullion/gold-bullionprice-forecast/
Fri, 26 Aug 2011 13:47:54 -0700August 26, 2011 – The gold bullion price had some serious jitters awaiting Bernanke’s speech this morning, as was expected. As the time drew near it plunged nearly $25, but within 45 minutes of his first words the price skyrocketed towards $1800. What earth shaking things did the chairman have to say?

“The Committee will continue to assess the economic outlook in light of incoming information and is prepared to employ its tools as appropriate to promote a stronger economic recovery in a context of price stability.” I confess, I didn’t see that one coming. And Bernanke turned up the heat on his year-old campaign to coerce Congress into doing its job saying that Fed policy has little long-term influence on the economy. The Fed doing the absolutely right thing for once – nothing. At least until they hold a special two-day meeting in mid-September.

Of course Mr. Chairman couldn’t keep himself from understating the problem for the American people, but I don’t think there’s very many left who would agree that the “recovery” has been “modest,” or be assured when told that “the growth fundamentals of the United States do not appear to have been permanently altered.”

What gave gold a shot in the arm this morning was the absence of even a hint of QE3. But that quickly wore off, and now we can expect a bumpy ride as everyone tries to read something into a speech that said little more than “We’re tired. Leave us alone. Go bother Congress.”

We should do that. Given a little time to reflect the Fed might rethink its business model. Bernanke might realize that the function of a central bank is not to micromanage the economy, that it can’t fix unemployment and it has absolutely no business mucking about in the markets. And seeing that the Fed has failed in its overarching mandate to protect the currency, maybe they will wind down the corporation altogether.

One can always dream.

]]>August 26, 2011 – The gold bullion price had some serious jitters awaiting Bernanke’s speech this morning, as was expected. As the time drew near it plunged nearly $25, but within 45 minutes of his first words the price skyrocketed towards $1800. What earth shaking things did the chairman have to say?

“The Committee will continue to assess the economic outlook in light of incoming information and is prepared to employ its tools as appropriate to promote a stronger economic recovery in a context of price stability.” I confess, I didn’t see that one coming. And Bernanke turned up the heat on his year-old campaign to coerce Congress into doing its job saying that Fed policy has little long-term influence on the economy. The Fed doing the absolutely right thing for once – nothing. At least until they hold a special two-day meeting in mid-September.

Of course Mr. Chairman couldn’t keep himself from understating the problem for the American people, but I don’t think there’s very many left who would agree that the “recovery” has been “modest,” or be assured when told that “the growth fundamentals of the United States do not appear to have been permanently altered.”

What gave gold a shot in the arm this morning was the absence of even a hint of QE3. But that quickly wore off, and now we can expect a bumpy ride as everyone tries to read something into a speech that said little more than “We’re tired. Leave us alone. Go bother Congress.”

We should do that. Given a little time to reflect the Fed might rethink its business model. Bernanke might realize that the function of a central bank is not to micromanage the economy, that it can’t fix unemployment and it has absolutely no business mucking about in the markets. And seeing that the Fed has failed in its overarching mandate to protect the currency, maybe they will wind down the corporation altogether.

]]>http://www.gold-bullion.org/bullion/gold-bullionprice-forecast/#13143916743722http://www.gold-bullion.org/bullion/gold-bullion-evaluation/
Wed, 24 Aug 2011 14:41:45 -0700August 24, 2011 – NYMEX is at it again, bucking the rest of the world with its evaluation of gold bullion. The London PM fixing was down just a buck and a half yesterday – but then we took over, lopping some $60 off the price. And it’s happening again today – even more so.

Obviously the traders here have peered inside their crystal balls and seen something big that will calm investors’ fears, but what could that be?

Perhaps a major war is about to break out. That’s an oldie but goodie Keynesian fix. Maybe even an invasion from outer space is pending, as one pundit suggested. But the odds of either of those happening are mighty slim.

Barring that, since nothing else of any import is on the docket this week, it must have something to do with Woods Hole. Have they foreseen QE3? Under the circumstances that seems quite unlikely, but Wall Street salivates like Pavlov’s dogs over the faintest scent of another Bernanke handout.

But let’s get back to the real world, where Korea has added their central bank to the growing list of those gobbling up the world’s gold supply (some 25 tons of it in the first round). If the European crisis has abated, nobody told me. Moody’s downgraded Japan another notch (an unavoidable consequence of a prolonged policy of zero interest) and China’s Dagong Global Credit Rating agency knocked the USA down a peg and gave our debt a negative outlook because the government “has not improved its solvency and the increasing government debt burden will deteriorate the US sovereign debt crisis.”

Meanwhile our economy has taken a massive $539 billion hit – that’s more than one half trillion, by the way – in the form of a gap between forecasts and actual revenues in California. If you think that’s a problem only for the state, think again. We’re all in this together, regardless of how deeply the Fed sticks its head in the sand.

So let the NYMEX beat the price down. The price of gold bullion could very well drop below $1700 before the market here regains its senses.

In the words of Tom Lehrer, “Angels we have heard on high, telling us go out and buy.”

]]>August 24, 2011 – NYMEX is at it again, bucking the rest of the world with its evaluation of gold bullion. The London PM fixing was down just a buck and a half yesterday – but then we took over, lopping some $60 off the price. And it’s happening again today – even more so.

Obviously the traders here have peered inside their crystal balls and seen something big that will calm investors’ fears, but what could that be?

Perhaps a major war is about to break out. That’s an oldie but goodie Keynesian fix. Maybe even an invasion from outer space is pending, as one pundit suggested. But the odds of either of those happening are mighty slim.

Barring that, since nothing else of any import is on the docket this week, it must have something to do with Woods Hole. Have they foreseen QE3? Under the circumstances that seems quite unlikely, but Wall Street salivates like Pavlov’s dogs over the faintest scent of another Bernanke handout.

But let’s get back to the real world, where Korea has added their central bank to the growing list of those gobbling up the world’s gold supply (some 25 tons of it in the first round). If the European crisis has abated, nobody told me. Moody’s downgraded Japan another notch (an unavoidable consequence of a prolonged policy of zero interest) and China’s Dagong Global Credit Rating agency knocked the USA down a peg and gave our debt a negative outlook because the government “has not improved its solvency and the increasing government debt burden will deteriorate the US sovereign debt crisis.”

Meanwhile our economy has taken a massive $539 billion hit – that’s more than one half trillion, by the way – in the form of a gap between forecasts and actual revenues in California. If you think that’s a problem only for the state, think again. We’re all in this together, regardless of how deeply the Fed sticks its head in the sand.

So let the NYMEX beat the price down. The price of gold bullion could very well drop below $1700 before the market here regains its senses.

In the words of Tom Lehrer, “Angels we have heard on high, telling us go out and buy.”

]]>http://www.gold-bullion.org/bullion/gold-bullion-evaluation/#13142221053718http://www.gold-bullion.org/bullion/wakeupcall-buygoldbullion/
Mon, 22 Aug 2011 18:05:28 -0700August 22, 2011 – In just four weeks gold bullion prices have shot up over 15% while the Dow tumbled by roughly the same amount. That’s a wake-up call if I ever heard one. But what are the average folks doing about it? Mostly they are just sitting around, wringing their hands as they worry about their 401Ks and waiting for words of salvation from Jackson Hole.

I cannot fathom anything more insane than looking to Ben Bernanke for answers. By his own admission he has used all the tools at his disposal, and the net effect of it all is things have gotten much worse. Now the pressure is really on and we should all be very, very afraid.

You know Bernanke is just itching to pump some more cash into the stock market – and his cronies are pleading with him to do so. But it is doubtful that the bubble would hold air the second time around and besides, fool me twice …

Bernanke also can’t lower interest rates any further – zero is about it unless he wants to start paying banks to borrow money. Of course if he wants to get the debt machine fired up again paying folks to go deeper in hock just might work – for a while.

Doing nothing, while probably his best option, wouldn’t be at all well received, so that leaves doing something new. And that’s what scares me.

The Feds astounding ineptitude has us in deep enough trouble already. I shudder to imagine them dredging up some left-field Keynesian theory to pump just enough phony life in the economy to prolong this backslide even a moment longer than necessary.

Of course Bernanke could surprise us all and announce his conversion to the Austrian school. He could tell us all we just have to knuckle down and work our way out of this mess. He could let interest rates rise and the market find its own equilibrium. He could bring reason back to our fiscal policy.

Just don’t count on it. And stop agonizing over those 401Ks – there’s nothing you can do about it anyway. What you can do right now – today – is heed the wake-up call and buy gold bullion.

]]>August 22, 2011 – In just four weeks gold bullion prices have shot up over 15% while the Dow tumbled by roughly the same amount. That’s a wake-up call if I ever heard one. But what are the average folks doing about it? Mostly they are just sitting around, wringing their hands as they worry about their 401Ks and waiting for words of salvation from Jackson Hole.

I cannot fathom anything more insane than looking to Ben Bernanke for answers. By his own admission he has used all the tools at his disposal, and the net effect of it all is things have gotten much worse. Now the pressure is really on and we should all be very, very afraid.

You know Bernanke is just itching to pump some more cash into the stock market – and his cronies are pleading with him to do so. But it is doubtful that the bubble would hold air the second time around and besides, fool me twice …

Bernanke also can’t lower interest rates any further – zero is about it unless he wants to start paying banks to borrow money. Of course if he wants to get the debt machine fired up again paying folks to go deeper in hock just might work – for a while.

Doing nothing, while probably his best option, wouldn’t be at all well received, so that leaves doing something new. And that’s what scares me.

The Feds astounding ineptitude has us in deep enough trouble already. I shudder to imagine them dredging up some left-field Keynesian theory to pump just enough phony life in the economy to prolong this backslide even a moment longer than necessary.

Of course Bernanke could surprise us all and announce his conversion to the Austrian school. He could tell us all we just have to knuckle down and work our way out of this mess. He could let interest rates rise and the market find its own equilibrium. He could bring reason back to our fiscal policy.

Just don’t count on it. And stop agonizing over those 401Ks – there’s nothing you can do about it anyway. What you can do right now – today – is heed the wake-up call and buy gold bullion.

]]>http://www.gold-bullion.org/bullion/wakeupcall-buygoldbullion/#13140615283715http://www.gold-bullion.org/bullion/gold-bullion-bubble/
Mon, 15 Aug 2011 12:50:30 -0700August 15, 2011 – Make no mistake, gold bullion is definitely heading for a bubble. We just haven’t got there yet. But the day is coming when a single act will finally bring an end to the metal’s historic run – global re-monetization of gold.

Of course I expect very few of us will be around to witness that day. I fear the world has not learned a very important lesson yet and will make one final stab at a fiat money based economy, perhaps with some form of global currency. For a while things will pick up again, as it always does when a new currency emerges. But inevitably it too will fail, with repercussions that will make the fallout from this crisis seem mild.

The corrupting influence of fiat money has proven to be irresistible every time it has been adopted. Culture evolves slowly, growing around widely accepted tenets of the day. The more ingrained those tenets become, the more unshakable is the dogma and the more difficult it becomes to change course.

It will never again be as easy to return to hard currency as it is today, but it will never again be as difficult to sway popular opinion in that direction. Humans need faith to survive and we vest our faith in our dogma. It is our nature to believe that everything is as it should be. And it will take a great deal more than the troubles we face today to cast aside our preconceived notions and seek out a better way.

Just look at the headlines. All weekend long the media speculated on what will happen to our 401Ks when Wall Street gets back to work this week. Meanwhile the President has abandoned his office to rejoin Congress on the campaign trail, where everyone is spoon feeding the public with the Pablum it craves rather than telling us like it is. There was one voice of reason, however, but he has now withdrawn for lack of popular support.

Tim Pawlenty was a bulldog with his teeth firmly clenched around the Fed’s leg. He didn’t come to us with any grandiose plans or flowery speech about how everything was going to be all right. But he knew that nothing else would matter if we didn’t start by abolishing the Fed.

Andy Duncan tells a strikingly similar story in the Mises Daily and pleads for the one voice decrying the Bank of England’s “abysmal record of incompetence, predictive failure, and dismal Keynesianism” to be heard.

I would rejoice at the end of the bull run on gold bullion, but it seems unlikely I will live to see that better world.

]]>August 15, 2011 – Make no mistake, gold bullion is definitely heading for a bubble. We just haven’t got there yet. But the day is coming when a single act will finally bring an end to the metal’s historic run – global re-monetization of gold.

Of course I expect very few of us will be around to witness that day. I fear the world has not learned a very important lesson yet and will make one final stab at a fiat money based economy, perhaps with some form of global currency. For a while things will pick up again, as it always does when a new currency emerges. But inevitably it too will fail, with repercussions that will make the fallout from this crisis seem mild.

The corrupting influence of fiat money has proven to be irresistible every time it has been adopted. Culture evolves slowly, growing around widely accepted tenets of the day. The more ingrained those tenets become, the more unshakable is the dogma and the more difficult it becomes to change course.

It will never again be as easy to return to hard currency as it is today, but it will never again be as difficult to sway popular opinion in that direction. Humans need faith to survive and we vest our faith in our dogma. It is our nature to believe that everything is as it should be. And it will take a great deal more than the troubles we face today to cast aside our preconceived notions and seek out a better way.

Just look at the headlines. All weekend long the media speculated on what will happen to our 401Ks when Wall Street gets back to work this week. Meanwhile the President has abandoned his office to rejoin Congress on the campaign trail, where everyone is spoon feeding the public with the Pablum it craves rather than telling us like it is. There was one voice of reason, however, but he has now withdrawn for lack of popular support.

Tim Pawlenty was a bulldog with his teeth firmly clenched around the Fed’s leg. He didn’t come to us with any grandiose plans or flowery speech about how everything was going to be all right. But he knew that nothing else would matter if we didn’t start by abolishing the Fed.

Andy Duncan tells a strikingly similar story in the Mises Daily and pleads for the one voice decrying the Bank of England’s “abysmal record of incompetence, predictive failure, and dismal Keynesianism” to be heard.

I would rejoice at the end of the bull run on gold bullion, but it seems unlikely I will live to see that better world.

]]>http://www.gold-bullion.org/bullion/gold-bullion-bubble/#13134378303710http://www.gold-bullion.org/bullion/goldbullion-safehaven/
Fri, 12 Aug 2011 11:57:45 -0700August 12, 2011 – It is no wonder that the stock market has experienced four consecutive days of $400 plus movements for the first time ever and that the price of gold bullion is meeting some resistance as it closes out a stellar week of gains. Investors have gone bipolar.

The big news for the terminally optimistic was of course the seasonally adjusted increase of 0.5% in retail sales, even though a Market Watch survey showed economists expected the gain to be 40% higher than that. The biggest increase by far, however, was in gasoline sales – 1.6% - and that puts a damper on other discretionary spending.

But that ought not throw a wet blanket on the party. Even without gasoline sales there was a 0.3% gain. Interestingly, both groceries and liquor sales were up 0.5% - read into that what you will. Also putting in a strong show were clothing, furniture, electronics, and appliances, but how much of that were begrudging purchases of necessities for the coming school year?

The Reuters consumer sentiment index may shed some light on that. That gauge hit 54.9 in August, down from 63.7 the month before and is now at the lowest level in 31 years. That’s a darned good indication of the depressive half of the bipolar cycle.

The manic phase is equally evident in the headlong rush to Treasuries, the very instruments that S&P just downgraded. There is no denying the groundswell in safe haven sentiment, but seeking that in Treasuries is nothing shy of delusional.

For some time now investors enamored with soft money but cognizant of the high risk in the dollar and US debt have flocked to the Swiss franc for safe haven. Up till now it has worked out quite well as the currency has closely tracked gold bullion. But the Swiss are fed up with having their currency artificially jacked up by foreign investors and they have made it absolutely clear that they intend to put an end to it, even going so far as to pin the franc to the euro.

Investors withdrawing from the franc have no place to go other than gold. Thus we are seeing the beginnings of broad-based acceptance of gold as the one true safe haven.

As the movement gains momentum resistance to the steadily rising price of gold will all but disappear, and gold bullion investment will resume its rightful role as the universally accepted protector of wealth.

]]>August 12, 2011 – It is no wonder that the stock market has experienced four consecutive days of $400 plus movements for the first time ever and that the price of gold bullion is meeting some resistance as it closes out a stellar week of gains. Investors have gone bipolar.

The big news for the terminally optimistic was of course the seasonally adjusted increase of 0.5% in retail sales, even though a Market Watch survey showed economists expected the gain to be 40% higher than that. The biggest increase by far, however, was in gasoline sales – 1.6% - and that puts a damper on other discretionary spending.

But that ought not throw a wet blanket on the party. Even without gasoline sales there was a 0.3% gain. Interestingly, both groceries and liquor sales were up 0.5% - read into that what you will. Also putting in a strong show were clothing, furniture, electronics, and appliances, but how much of that were begrudging purchases of necessities for the coming school year?

The Reuters consumer sentiment index may shed some light on that. That gauge hit 54.9 in August, down from 63.7 the month before and is now at the lowest level in 31 years. That’s a darned good indication of the depressive half of the bipolar cycle.

The manic phase is equally evident in the headlong rush to Treasuries, the very instruments that S&P just downgraded. There is no denying the groundswell in safe haven sentiment, but seeking that in Treasuries is nothing shy of delusional.

For some time now investors enamored with soft money but cognizant of the high risk in the dollar and US debt have flocked to the Swiss franc for safe haven. Up till now it has worked out quite well as the currency has closely tracked gold bullion. But the Swiss are fed up with having their currency artificially jacked up by foreign investors and they have made it absolutely clear that they intend to put an end to it, even going so far as to pin the franc to the euro.

Investors withdrawing from the franc have no place to go other than gold. Thus we are seeing the beginnings of broad-based acceptance of gold as the one true safe haven.

As the movement gains momentum resistance to the steadily rising price of gold will all but disappear, and gold bullion investment will resume its rightful role as the universally accepted protector of wealth.

]]>http://www.gold-bullion.org/bullion/goldbullion-safehaven/#13131754653704http://www.gold-bullion.org/bullion/gold-bullion-reign/
Wed, 10 Aug 2011 14:23:52 -0700August 10, 2011 – While uncertainty has dominated the global stock exchanges this week, gold bullion prices are moving with conviction. Some markets – NYMEX in particular – look like they want to reverse the trend in the opening hours, but by the end of the day there has been no holding gold back.

Skittish investors are concerned that the price is moving too fast, and gold bears have the charts to feed their fears. Clearly, they say, gold is breaking out of the comfort zone of its moving average. What they fail to mention is that for several months running gold has underperformed according to every single fundamental driver. Even at the current trajectory it will take quite a while to get back on track.

That isn’t to say that the argument is devoid of merit, however. The gold bullion market has always been strongly influenced by investor sentiment, and in the recent past we have seen several spikes and dips fueled by brief emotional departures from the general mood. It is not out of the question that the current run is nothing more than a panic reaction to the S&P credit downgrade, but there are compelling reasons to suspect otherwise.

If gold’s run were due to investor panic then we would expect silver to be performing similarly. But silver’s drop last Friday was far more severe than gold’s, and Monday’s gains fell far short of the previous week’s peak. Gold, on the other hand, closed well ahead of the previous week’s peak on Monday. Then yesterday gold rose by over 2.5% while silver fell by over 3.75%.

Furthermore, it doesn’t look like the downgrade scared anybody because Treasuries are also turning in some pretty impressive numbers this week. The downgrade merely confirmed what most of us already knew and for reasons known only to them, investors continue flocking to US debt for safe haven despite our government’s inarguable fiscal ineptitude and yields that don’t even come close to balancing the risk. Maybe New York Bank’s precedent-setting negative interest rates are making even the garbage smell better.

I think that gold has simply come to its time. Investors are taking their first tentative steps into the market seeking near-term safe harbor while they continue hedging long term with Treasuries. The price of gold might take off now and never looks back or it might take a while to test out its new legs, but either way I believe we are entering a new era in which gold bullion will once again reign supreme.

]]>August 10, 2011 – While uncertainty has dominated the global stock exchanges this week, gold bullion prices are moving with conviction. Some markets – NYMEX in particular – look like they want to reverse the trend in the opening hours, but by the end of the day there has been no holding gold back.

Skittish investors are concerned that the price is moving too fast, and gold bears have the charts to feed their fears. Clearly, they say, gold is breaking out of the comfort zone of its moving average. What they fail to mention is that for several months running gold has underperformed according to every single fundamental driver. Even at the current trajectory it will take quite a while to get back on track.

That isn’t to say that the argument is devoid of merit, however. The gold bullion market has always been strongly influenced by investor sentiment, and in the recent past we have seen several spikes and dips fueled by brief emotional departures from the general mood. It is not out of the question that the current run is nothing more than a panic reaction to the S&P credit downgrade, but there are compelling reasons to suspect otherwise.

If gold’s run were due to investor panic then we would expect silver to be performing similarly. But silver’s drop last Friday was far more severe than gold’s, and Monday’s gains fell far short of the previous week’s peak. Gold, on the other hand, closed well ahead of the previous week’s peak on Monday. Then yesterday gold rose by over 2.5% while silver fell by over 3.75%.

Furthermore, it doesn’t look like the downgrade scared anybody because Treasuries are also turning in some pretty impressive numbers this week. The downgrade merely confirmed what most of us already knew and for reasons known only to them, investors continue flocking to US debt for safe haven despite our government’s inarguable fiscal ineptitude and yields that don’t even come close to balancing the risk. Maybe New York Bank’s precedent-setting negative interest rates are making even the garbage smell better.

I think that gold has simply come to its time. Investors are taking their first tentative steps into the market seeking near-term safe harbor while they continue hedging long term with Treasuries. The price of gold might take off now and never looks back or it might take a while to test out its new legs, but either way I believe we are entering a new era in which gold bullion will once again reign supreme.

]]>http://www.gold-bullion.org/bullion/gold-bullion-reign/#13130114323700http://www.gold-bullion.org/bullion/goldbullion-prices/
Mon, 08 Aug 2011 12:37:32 -0700August 08, 2011 – Early this morning, before I retired, I took a peek at the Asian markets to check out the early action in gold bullion prices and was quite surprised to see that gold had shot well past $1700. This morning I was even more surprised that not only had the price held, but London was keeping up the pace in early trade. And the Shanghai Composite Index closed down 3.7% while 10-Year Treasury yields slumped to 2.51%.

That is precisely what one should expect, of course, but I have grown accustomed to overblown reaction and not reasonable action. US debt constitutes a grossly disproportionate amount of the reserves of huge emerging Asian economies, so it is important for them to keep Treasury yields down (an therefore prices up) while they pare down their holdings and acquire hard assets. The situation in the West is vastly different, however, and the real fun begins when the US markets open their doors.

Western economies are ensnarled in a deflationary spiral. We are at the stage where lack of faith in the monetary system is so strong that no amount of government trickery will persuade the population not to deleverage. As Ludwig Von Mises said more than a half century ago, “There is no means of avoiding the final collapse of a boom brought about by such credit expansion.” But the Fed will keep trying.

One peculiar aspect of broad-based deleveraging of credit is that the resultant decline in asset prices is opposed by a temporary increase in the relative value of currency, thus creating the illusion of currency as a safe haven. So people hoard cash to ride out the storm. And when the stuff hits the fan, they panic and grab all the cash they can.

Deflation is only half of a cycle and without interference it will turn itself around. But the government’s notoriously ill-timed meddling is bound to flood the money supply at the worst possible moment, propelling the economy into hyperinflation. Overnight, all that hoarded cash will become worthless.

So it comes as no surprise that New York dragged bullion down to $1692 in the first two hours. But it is remarkable that it took less than a half hour to fully recover. It promises to be a very interesting week indeed for gold bullion.

]]>August 08, 2011 – Early this morning, before I retired, I took a peek at the Asian markets to check out the early action in gold bullion prices and was quite surprised to see that gold had shot well past $1700. This morning I was even more surprised that not only had the price held, but London was keeping up the pace in early trade. And the Shanghai Composite Index closed down 3.7% while 10-Year Treasury yields slumped to 2.51%.

That is precisely what one should expect, of course, but I have grown accustomed to overblown reaction and not reasonable action. US debt constitutes a grossly disproportionate amount of the reserves of huge emerging Asian economies, so it is important for them to keep Treasury yields down (an therefore prices up) while they pare down their holdings and acquire hard assets. The situation in the West is vastly different, however, and the real fun begins when the US markets open their doors.

Western economies are ensnarled in a deflationary spiral. We are at the stage where lack of faith in the monetary system is so strong that no amount of government trickery will persuade the population not to deleverage. As Ludwig Von Mises said more than a half century ago, “There is no means of avoiding the final collapse of a boom brought about by such credit expansion.” But the Fed will keep trying.

One peculiar aspect of broad-based deleveraging of credit is that the resultant decline in asset prices is opposed by a temporary increase in the relative value of currency, thus creating the illusion of currency as a safe haven. So people hoard cash to ride out the storm. And when the stuff hits the fan, they panic and grab all the cash they can.

Deflation is only half of a cycle and without interference it will turn itself around. But the government’s notoriously ill-timed meddling is bound to flood the money supply at the worst possible moment, propelling the economy into hyperinflation. Overnight, all that hoarded cash will become worthless.

So it comes as no surprise that New York dragged bullion down to $1692 in the first two hours. But it is remarkable that it took less than a half hour to fully recover. It promises to be a very interesting week indeed for gold bullion.

]]>http://www.gold-bullion.org/bullion/goldbullion-prices/#13128322523696http://www.gold-bullion.org/bullion/current-goldbullion-price/
Fri, 05 Aug 2011 13:37:36 -0700August 05, 2011 – On the London OTC, where the real suppliers and consumers meet to conduct real trade in real time, the price of gold bullion has been relentless in its recent surge. But what’s going on stateside?

Not that the futures trade is collapsing, but they instantly dropped some $30 off the London PM fix. There is but one explanation: American investors are going into full risk-off mode, cashing in everything they hold for dollars.

Stop. Take a deep breath. Count to ten. Relax.

OK, then. Why the panic? Yes, equities are looking pretty ugly right now. If you don’t have decades to hold, it might be wise to move some assets. But cash is the last thing on Earth you need. A mountain of greenbacks today will be tomorrow’s molehill. Severe risk-off says go where the purchasing power is least likely to deteriorate, and throughout history that has meant gold.

The dollar, my friends, is dying. It cannot be resurrected. And the country is progressing through the five stages of grief.

The first was denial and isolation, and we learned that pin-the-tail-on-the-Chinese was not going to get us anywhere. Next came anger, and boy did we get that one right. We blamed anyone and everyone but us for the mess we were in.

Then we entered the bargaining stage, when we tried to negotiate life back into the greenback. That reached its climax with The Deal, and we have now come to depression.

Depression is good at just one thing: blinding us to alternatives. It is the towering wall that stands between us and the final stage, acceptance. Funny thing is, once we Americans reach that stage we become a force to be reckoned with.

Faith in the dollar is misplaced, sustained only by euphoric recall. Let it go peacefully, it’s only dragging us down. Pay your last respects, roll up your sleeves, and get to work building new tomorrow.

If you have anchored our wealth to gold bullion, you have all you need to rise to the challenge.

]]>August 05, 2011 – On the London OTC, where the real suppliers and consumers meet to conduct real trade in real time, the price of gold bullion has been relentless in its recent surge. But what’s going on stateside?

Not that the futures trade is collapsing, but they instantly dropped some $30 off the London PM fix. There is but one explanation: American investors are going into full risk-off mode, cashing in everything they hold for dollars.

Stop. Take a deep breath. Count to ten. Relax.

OK, then. Why the panic? Yes, equities are looking pretty ugly right now. If you don’t have decades to hold, it might be wise to move some assets. But cash is the last thing on Earth you need. A mountain of greenbacks today will be tomorrow’s molehill. Severe risk-off says go where the purchasing power is least likely to deteriorate, and throughout history that has meant gold.

The dollar, my friends, is dying. It cannot be resurrected. And the country is progressing through the five stages of grief.

The first was denial and isolation, and we learned that pin-the-tail-on-the-Chinese was not going to get us anywhere. Next came anger, and boy did we get that one right. We blamed anyone and everyone but us for the mess we were in.

Then we entered the bargaining stage, when we tried to negotiate life back into the greenback. That reached its climax with The Deal, and we have now come to depression.

Depression is good at just one thing: blinding us to alternatives. It is the towering wall that stands between us and the final stage, acceptance. Funny thing is, once we Americans reach that stage we become a force to be reckoned with.

Faith in the dollar is misplaced, sustained only by euphoric recall. Let it go peacefully, it’s only dragging us down. Pay your last respects, roll up your sleeves, and get to work building new tomorrow.

If you have anchored our wealth to gold bullion, you have all you need to rise to the challenge.

]]>http://www.gold-bullion.org/bullion/current-goldbullion-price/#13125766563692http://www.gold-bullion.org/bullion/goldbullion/
Thu, 04 Aug 2011 11:51:09 -0700August 04, 2011 – Surging gold bullion prices and eight sorry days for the stock market are giving us an unambiguous message: Nobody is finding anything in The Deal to give them a warm fuzzy feeling. I am surprised, at the least I expected a period of wait and see before the inevitable reaction.

From the beginning the debt ceiling debate had nothing to do with the underlying causes of our economic doldrums. It was all about borrowing more in order to put off dealing with that until after elections. The prescribed deficit reduction does nothing to alter the course we are on. And that is the real issue when it comes to the impending credit downgrade.

Washington has proven once and for all it is only marginally capable of governing this country, and is totally incompetent in managing the world’s bellwether economy. Global economists have no interest whatsoever in kicking the can – they will demand action that leads to the least pain and quickest solution to the problems we have caused.

Gold’s strong and steady surge in response to The Deal leaves no doubt that faith in the United States has ebbed to new lows. Even the sacrosanct US precious metals futures exchange is being challenged by the Hong Kong Mercantile Exchange, which is moving towards more Asian- friendly contracts that include trade based on the yuan as well as the dollar.

If it weren’t for trillions of dollars in Treasury debt floating about the global market the greenback would have been history long ago. That is one enormous mountain of liquidity, and dumping it all too fast would be catastrophic. But we have left the world with few options. One way or another, we will eventually default on that debt.

At some point the devaluation of the dollar – which is the only way that the government can possibly hope to get ahead of the debt – will constitute virtual default. That could occur gradually as the economy rots, or suddenly with another round of quantitative easing. The best the holders of our debt can hope for is a credit downgrade that would jack up interest rates and slow the bleeding while they divest.

For the time being gold bullion alone has the ability to absorb such massive liquidity, and that adds up to renewed vigor in gold’s bull market.

]]>August 04, 2011 – Surging gold bullion prices and eight sorry days for the stock market are giving us an unambiguous message: Nobody is finding anything in The Deal to give them a warm fuzzy feeling. I am surprised, at the least I expected a period of wait and see before the inevitable reaction.

From the beginning the debt ceiling debate had nothing to do with the underlying causes of our economic doldrums. It was all about borrowing more in order to put off dealing with that until after elections. The prescribed deficit reduction does nothing to alter the course we are on. And that is the real issue when it comes to the impending credit downgrade.

Washington has proven once and for all it is only marginally capable of governing this country, and is totally incompetent in managing the world’s bellwether economy. Global economists have no interest whatsoever in kicking the can – they will demand action that leads to the least pain and quickest solution to the problems we have caused.

Gold’s strong and steady surge in response to The Deal leaves no doubt that faith in the United States has ebbed to new lows. Even the sacrosanct US precious metals futures exchange is being challenged by the Hong Kong Mercantile Exchange, which is moving towards more Asian- friendly contracts that include trade based on the yuan as well as the dollar.

If it weren’t for trillions of dollars in Treasury debt floating about the global market the greenback would have been history long ago. That is one enormous mountain of liquidity, and dumping it all too fast would be catastrophic. But we have left the world with few options. One way or another, we will eventually default on that debt.

At some point the devaluation of the dollar – which is the only way that the government can possibly hope to get ahead of the debt – will constitute virtual default. That could occur gradually as the economy rots, or suddenly with another round of quantitative easing. The best the holders of our debt can hope for is a credit downgrade that would jack up interest rates and slow the bleeding while they divest.

For the time being gold bullion alone has the ability to absorb such massive liquidity, and that adds up to renewed vigor in gold’s bull market.

]]>http://www.gold-bullion.org/bullion/goldbullion/#13124838693688http://www.gold-bullion.org/bullion/US-debtceiling-deal/
Wed, 03 Aug 2011 09:52:01 -0700August 03, 2011 – Even with my well-deserved cynicism I had dared to hope that when the inevitable twelfth hour deal was reached it would have at least one small surprise, just enough to make the rating services at least hesitate.

The headline on the White House fact sheet released sunday night proudly proclaims “Bipartisan Debt Deal: A Win For The Economy And Budget Discipline.” Then the first bullet on the agreement kicked the can all the way into 2013.

“By ensuring that no one will be able to use the threat of the nation’s first default now, or in only a few months, for political gain,” you see, The Deal “removes the cloud of uncertainty over our economy at this critical time.” I feel better already.

The Deal “locks in a down payment on significant deficit reduction,” like agreeing to make a down payment on a new Porsche then driving off without agreeing to pay the balance. But wait, they established “a bipartisan process to seek a balanced approach to larger deficit reduction through entitlement and tax reform.” Not only that, they’re bringing in the cops - “an enforcement mechanism that gives all sides an incentive to reach bipartisan compromise on historic deficit reduction, while protecting Social Security, Medicare beneficiaries and low- income programs.”

Best of all, “the middle class, seniors and those who are most vulnerable,” apparently meaning all us average Americans, are prevented “from shouldering the burden of deficit reduction.”

There’s The Deal. They keep the threat of default out of their campaign rhetoric and to compensate they get a “bipartisan process” to provide endless grist for their political mills. They have to cough up a fraction of what needs to be paid on the deficit for show, but they get to argue about the rest to their hearts content.

Still, they made darned sure that they do come to agreement by 2013. If they don’t, then “The Deal would automatically add nearly $500 billion in defense cuts on top of cuts already made, and, at the same time, it would cut critical programs like infrastructure or education.” So, if they can’t come to an agreement then they will be forced right back to where they were before The Deal.

As of this writing The Deal was only that, but I expect there are very few who will stand in its way. It is, after all, the best they could do and The Deal will most likely become law. That’s really pathetic, and I cannot imagine the rating services seeing it otherwise.

]]>August 03, 2011 – Even with my well-deserved cynicism I had dared to hope that when the inevitable twelfth hour deal was reached it would have at least one small surprise, just enough to make the rating services at least hesitate.

The headline on the White House fact sheet released sunday night proudly proclaims “Bipartisan Debt Deal: A Win For The Economy And Budget Discipline.” Then the first bullet on the agreement kicked the can all the way into 2013.

“By ensuring that no one will be able to use the threat of the nation’s first default now, or in only a few months, for political gain,” you see, The Deal “removes the cloud of uncertainty over our economy at this critical time.” I feel better already.

The Deal “locks in a down payment on significant deficit reduction,” like agreeing to make a down payment on a new Porsche then driving off without agreeing to pay the balance. But wait, they established “a bipartisan process to seek a balanced approach to larger deficit reduction through entitlement and tax reform.” Not only that, they’re bringing in the cops - “an enforcement mechanism that gives all sides an incentive to reach bipartisan compromise on historic deficit reduction, while protecting Social Security, Medicare beneficiaries and low- income programs.”

Best of all, “the middle class, seniors and those who are most vulnerable,” apparently meaning all us average Americans, are prevented “from shouldering the burden of deficit reduction.”

There’s The Deal. They keep the threat of default out of their campaign rhetoric and to compensate they get a “bipartisan process” to provide endless grist for their political mills. They have to cough up a fraction of what needs to be paid on the deficit for show, but they get to argue about the rest to their hearts content.

Still, they made darned sure that they do come to agreement by 2013. If they don’t, then “The Deal would automatically add nearly $500 billion in defense cuts on top of cuts already made, and, at the same time, it would cut critical programs like infrastructure or education.” So, if they can’t come to an agreement then they will be forced right back to where they were before The Deal.

As of this writing The Deal was only that, but I expect there are very few who will stand in its way. It is, after all, the best they could do and The Deal will most likely become law. That’s really pathetic, and I cannot imagine the rating services seeing it otherwise.

]]>http://www.gold-bullion.org/bullion/US-debtceiling-deal/#13123903213684http://www.gold-bullion.org/bullion/US-doomsday/
Fri, 29 Jul 2011 13:31:14 -0700July 29, 2011 – The circus in Washington is building up to its death defying climax while deep in the shadows the administration cobbles up a “doomsday plan.” And nobody is talking about the one thing that has any hope of salvaging our economy – dumping our imperialist agenda.

There is absolutely no way to justify maintaining our cold war military presence around the globe under the guise of national security. The age of rogue nations rising up and engaging the world mano-a-mano is over. We are over there only to keep our imperial dreams alive, and it is driving the country to economy ruin.

The defense budget is not sacred for the simple reason that the mission dictated by our government is not sacred. Our military should not be in the business of protecting America’s “interests” abroad, it should be concerned only with providing “for the common defense.”

Such a massive realignment of our military purpose would instantly restore us to solvency, but even the suggestion of such action would bring up cries of treason. But those same people have the audacity to use our soldiers’ paychecks as a pawn in the debt ceiling debate. The hypocrisy is as blatant as it is despicable.

Both sides of the debate are equally culpable. We have been led to believe that failure to raise the ceiling will force us to choose between two evils: stop all entitlements and leave the old and infirm to meet cruel and untimely deaths or withhold the meager earnings of those who put their lives on the line for our country every day.

How much clearer must our politicians’ total lack of concern for the people be? To what extremes will they go wagering our self-evident rights of life, liberty, and the pursuit of happiness for their personal political gain? At what point will we at long last sit up and take notice of what they are doing to America?

If Washington has to fall back on a doomsday plan, you can be sure only that it will be politically expedient. The backbiting will go on ad nauseam while more and more Americans suffer. Regardless of what gets done over the next four days, nothing significant will change.

Americans need to craft their own doomsday plans and we’re running short on time. Investing in gold bullion can’t hurt, and it is one precaution we can’t afford to pass up.

]]>July 29, 2011 – The circus in Washington is building up to its death defying climax while deep in the shadows the administration cobbles up a “doomsday plan.” And nobody is talking about the one thing that has any hope of salvaging our economy – dumping our imperialist agenda.

There is absolutely no way to justify maintaining our cold war military presence around the globe under the guise of national security. The age of rogue nations rising up and engaging the world mano-a-mano is over. We are over there only to keep our imperial dreams alive, and it is driving the country to economy ruin.

The defense budget is not sacred for the simple reason that the mission dictated by our government is not sacred. Our military should not be in the business of protecting America’s “interests” abroad, it should be concerned only with providing “for the common defense.”

Such a massive realignment of our military purpose would instantly restore us to solvency, but even the suggestion of such action would bring up cries of treason. But those same people have the audacity to use our soldiers’ paychecks as a pawn in the debt ceiling debate. The hypocrisy is as blatant as it is despicable.

Both sides of the debate are equally culpable. We have been led to believe that failure to raise the ceiling will force us to choose between two evils: stop all entitlements and leave the old and infirm to meet cruel and untimely deaths or withhold the meager earnings of those who put their lives on the line for our country every day.

How much clearer must our politicians’ total lack of concern for the people be? To what extremes will they go wagering our self-evident rights of life, liberty, and the pursuit of happiness for their personal political gain? At what point will we at long last sit up and take notice of what they are doing to America?

If Washington has to fall back on a doomsday plan, you can be sure only that it will be politically expedient. The backbiting will go on ad nauseam while more and more Americans suffer. Regardless of what gets done over the next four days, nothing significant will change.

Americans need to craft their own doomsday plans and we’re running short on time. Investing in gold bullion can’t hurt, and it is one precaution we can’t afford to pass up.

]]>http://www.gold-bullion.org/bullion/US-doomsday/#13119714743681http://www.gold-bullion.org/bullion/UScreditrating/
Wed, 27 Jul 2011 10:20:36 -0700July 27, 2011 - If you really want a gut feel for the credit rating game and how it affects gold bullion prices, you have to get inside the heads of those who conjure up those mystical scores. Don’t worry, there’s plenty of room in there.

The first thing you will notice is that the score defines creditworthiness and not the other way around. If your cronies gamble on some truly ridiculous junk, rate them AAA so they can unload it all before they get burned. And if your country engages in some harebrained policy certain to trash the world’s reserve currency?

The first thing you do is pretend not to notice. Next you get very aggressive with every other country doing exactly the same stupid things. Then you come up with a story that everybody buys into simply because it is so lame that nobody can imagine you would ever create such a fiction.

The fiction, of course, is that our rating must be AAA because we alone can print the world reserve currency. We can never be out of money because we will always have plenty of checks.

The most bizarre thing about the forgoing is that it has worked for as long as it has. The world needed us to rebuild after WWII (it didn’t hurt holding the war on their turf) and our economic juggernaut was just getting underway. Our transition from premier producer to premier consumer was of little import to a world feeding off our largesse. Nobody saw anything wrong with global trade becoming inextricably tied up with the greenback.

Then one day the world awoke to see a naked emperor. Clearly it was time for a change, but everyone would suffer if he were dethroned. So when he declared “I am fully clothed!” they pretended to believe, but everywhere contingency plans were being put in place.

Do you honestly think that anybody other than our country’s own rating services believes we deserve a AAA credit rating? We are the suckers, not the world. The reserves of emerging economies are still heavily off balance in dollars and until they can surreptitiously replace them with hard assets they will keep the myth of the almighty dollar alive.

Eventually the services must downgrade our rating hoping to preserve their credibility. In truth, they have no credibility to lose and the world downgraded us long ago. But perhaps then people will finally begin to understand the wisdom of gold bullion investments.

]]>The world is laughing behind our back.

July 27, 2011 - If you really want a gut feel for the credit rating game and how it affects gold bullion prices, you have to get inside the heads of those who conjure up those mystical scores. Don’t worry, there’s plenty of room in there.

The first thing you will notice is that the score defines creditworthiness and not the other way around. If your cronies gamble on some truly ridiculous junk, rate them AAA so they can unload it all before they get burned. And if your country engages in some harebrained policy certain to trash the world’s reserve currency?

The first thing you do is pretend not to notice. Next you get very aggressive with every other country doing exactly the same stupid things. Then you come up with a story that everybody buys into simply because it is so lame that nobody can imagine you would ever create such a fiction.

The fiction, of course, is that our rating must be AAA because we alone can print the world reserve currency. We can never be out of money because we will always have plenty of checks.

The most bizarre thing about the forgoing is that it has worked for as long as it has. The world needed us to rebuild after WWII (it didn’t hurt holding the war on their turf) and our economic juggernaut was just getting underway. Our transition from premier producer to premier consumer was of little import to a world feeding off our largesse. Nobody saw anything wrong with global trade becoming inextricably tied up with the greenback.

Then one day the world awoke to see a naked emperor. Clearly it was time for a change, but everyone would suffer if he were dethroned. So when he declared “I am fully clothed!” they pretended to believe, but everywhere contingency plans were being put in place.

Do you honestly think that anybody other than our country’s own rating services believes we deserve a AAA credit rating? We are the suckers, not the world. The reserves of emerging economies are still heavily off balance in dollars and until they can surreptitiously replace them with hard assets they will keep the myth of the almighty dollar alive.

Eventually the services must downgrade our rating hoping to preserve their credibility. In truth, they have no credibility to lose and the world downgraded us long ago. But perhaps then people will finally begin to understand the wisdom of gold bullion investments.

]]>http://www.gold-bullion.org/bullion/UScreditrating/#13117872363677http://www.gold-bullion.org/bullion/preciousmetal-goldbullion/
Tue, 26 Jul 2011 11:47:29 -0700July 26, 2011 – The danger of a crisis of epic proportions, one that makes the foundering of the economy seem a mere nuisance in comparison, has been growing for years. The climate is changing in perilous ways, and no greater threat to our way of life exists than that of a mega- drought.

For decades we have known that the vast southwestern aquifers are being steadily depleted by the great cities we have carved out of the deserts. In California, which is the world’s eighth largest economy, Los Angeles competes with the Imperial valley for the precious but limited resource delivered by the Colorado River while Las Vegas consumes ever more for itself. Lake Mead has already dropped nearly 150 feet as more water is drawn out than nature can replenish.

No other resource is as vital to human survival as water. Food is a close second, and without water there will be no food. When water becomes scarce individuals and nations alike will feel no compunction about taking it by force.

So far the conditions we have experienced have not been all that unusual, but government drought management teams are already hard at work devising contingency plans. That should worry everybody.

There is a common thread here. The answer to the problem of dwindling resources is not to pin your hopes on some future miracle while using up what little is left at an ever increasing rate. The focal point of policy must be sustainability, whether the subject is currency, energy, water, or any other essential resource.

Deserts are deserts. By nature they are unsuitable for sustaining large populations and extensive agriculture. Insisting on using them so can lead only to widespread civil unrest and ultimately the collapse of our society. I have no doubts that mankind will survive because there will always be those who foresee the dangers and prepare themselves for the eventuality. How deeply society will regress, however, is anything but certain.

For a while, at least, people will still be able to buy the necessities of life, providing they have a viable medium of exchange. For that, gold will undoubtedly dominate. But if we let things go too far, water could become so scarce that it cannot be purchased, even with gold bullion.

]]>July 26, 2011 – The danger of a crisis of epic proportions, one that makes the foundering of the economy seem a mere nuisance in comparison, has been growing for years. The climate is changing in perilous ways, and no greater threat to our way of life exists than that of a mega- drought.

For decades we have known that the vast southwestern aquifers are being steadily depleted by the great cities we have carved out of the deserts. In California, which is the world’s eighth largest economy, Los Angeles competes with the Imperial valley for the precious but limited resource delivered by the Colorado River while Las Vegas consumes ever more for itself. Lake Mead has already dropped nearly 150 feet as more water is drawn out than nature can replenish.

No other resource is as vital to human survival as water. Food is a close second, and without water there will be no food. When water becomes scarce individuals and nations alike will feel no compunction about taking it by force.

So far the conditions we have experienced have not been all that unusual, but government drought management teams are already hard at work devising contingency plans. That should worry everybody.

There is a common thread here. The answer to the problem of dwindling resources is not to pin your hopes on some future miracle while using up what little is left at an ever increasing rate. The focal point of policy must be sustainability, whether the subject is currency, energy, water, or any other essential resource.

Deserts are deserts. By nature they are unsuitable for sustaining large populations and extensive agriculture. Insisting on using them so can lead only to widespread civil unrest and ultimately the collapse of our society. I have no doubts that mankind will survive because there will always be those who foresee the dangers and prepare themselves for the eventuality. How deeply society will regress, however, is anything but certain.

For a while, at least, people will still be able to buy the necessities of life, providing they have a viable medium of exchange. For that, gold will undoubtedly dominate. But if we let things go too far, water could become so scarce that it cannot be purchased, even with gold bullion.

]]>http://www.gold-bullion.org/bullion/preciousmetal-goldbullion/#13117060493676http://www.gold-bullion.org/bullion/societalregression/
Fri, 22 Jul 2011 13:04:21 -0700July 22, 2011 – In the early 1990s the term societal regression was popular among sociologists to describe a disturbing retrogressive trend towards the tribal state. At the time they were mostly discussing the exponential growth in gang activity, but only because nobody imagined that in only two decades the phenomenon would threaten to spread throughout the civilized world.

Societal regression reflects the most primal instincts of human beings. When events threaten our survival centuries of advancing civilization vanish overnight. We will stop at nothing to provide for our families and assure the continuation of our bloodline. Even the most law abiding and upright citizens will get caught up in the Darwinian struggle.

This is not some far fetched Mad Max tale. The world is drawing ever closer to chaos as western economies struggle to hold onto dominance while their fiat monies are destroyed by sovereign debt. The repercussions are already being felt in the poorer nations, where food and energy prices are being inflated out of reach. With nothing to lose starving people will not hesitate to cross borders and will fight with all the ferocity they can muster for their right to live. As conditions deteriorate, the violence will spread.

Most Americans are dangerously complacent, believing that could never happen here. Yet social experts agree that social order would completely dissolve in a matter of just weeks following a major precipitating event, such as a cascade failure of the power grid, but it can be put in motion with far less.

The financial crisis will almost certainly tear giant holes in the social safety nets, if not destroy them completely. We have set ourselves up for a repeat of the events of 2008 but without the resources to get the victims through. With no assistance for food or shelter to be had, and no work to be found, civil unrest will erupt across the nation.

As food supplies dwindle crime will run rampant. Banks will close their doors and a truckload of greenbacks won’t buy you the time of day. You will become suddenly willing to fight to the death to protect you and yours and to acquire the things you need to survive.

Believe it. That is not some improbable doomsday scenario, but a realistic look at one way things might play out. The odds that it will are not so remote as you may think, so even the slightest possibility merits disaster preparation on steroids, including accumulating the biggest stash of gold bullion you can afford.

]]>July 22, 2011 – In the early 1990s the term societal regression was popular among sociologists to describe a disturbing retrogressive trend towards the tribal state. At the time they were mostly discussing the exponential growth in gang activity, but only because nobody imagined that in only two decades the phenomenon would threaten to spread throughout the civilized world.

Societal regression reflects the most primal instincts of human beings. When events threaten our survival centuries of advancing civilization vanish overnight. We will stop at nothing to provide for our families and assure the continuation of our bloodline. Even the most law abiding and upright citizens will get caught up in the Darwinian struggle.

This is not some far fetched Mad Max tale. The world is drawing ever closer to chaos as western economies struggle to hold onto dominance while their fiat monies are destroyed by sovereign debt. The repercussions are already being felt in the poorer nations, where food and energy prices are being inflated out of reach. With nothing to lose starving people will not hesitate to cross borders and will fight with all the ferocity they can muster for their right to live. As conditions deteriorate, the violence will spread.

Most Americans are dangerously complacent, believing that could never happen here. Yet social experts agree that social order would completely dissolve in a matter of just weeks following a major precipitating event, such as a cascade failure of the power grid, but it can be put in motion with far less.

The financial crisis will almost certainly tear giant holes in the social safety nets, if not destroy them completely. We have set ourselves up for a repeat of the events of 2008 but without the resources to get the victims through. With no assistance for food or shelter to be had, and no work to be found, civil unrest will erupt across the nation.

As food supplies dwindle crime will run rampant. Banks will close their doors and a truckload of greenbacks won’t buy you the time of day. You will become suddenly willing to fight to the death to protect you and yours and to acquire the things you need to survive.

Believe it. That is not some improbable doomsday scenario, but a realistic look at one way things might play out. The odds that it will are not so remote as you may think, so even the slightest possibility merits disaster preparation on steroids, including accumulating the biggest stash of gold bullion you can afford.

Historically that has been the pattern, a phenomenon well known to insiders that has caused individual investors to be labeled “dumb money.” But household investors aren’t dumb, they only lack the confidence to follow their instincts. So they wait to see what everybody else is doing before they act.

When we were children most of us tried at least once to wriggle out of a situation by telling our parents “But all the kids are doing it!” And invariably the response was something like “If all your friends jumped off a cliff, would you follow them?” The logic still applies today.

The mob mentality drives individuals to storm the markets in huge numbers at exactly the wrong times. They rush in to buy at the tail end of upsides and to sell as the downsides bottom out. And they do it without fail, over and over again.

For anyone who chooses not to follow the crowd, that represents a huge signal to trade. Right now the price of gold bullion is admittedly quite high, but reason dictates that it should in fact rise much, much higher. So what is holding it back? For one thing the mob has not yet turned.

Investing in gold bullion today is opportunity at its absolute best. The fundamentals add more upward pressure on the price every day and will continue driving it upward into the foreseeable future. But someday the mob will turn and a bubble is bound to form. The aggregate of individual investments is an enormous force, and when it is let loose on the gold market prices will soar to unthinkable highs.

Those who buy gold bullion today are almost certain to be faced with an enviable decision down the road. They could sell off their gold bullion investment at enormous profit or keep holding onto it as the ultimate store of wealth.

]]>July 20, 2011 – Gold bullion prices are heating up, and will soon reach the boiling point. But despite the unmistakable signs all around them, individual investors are still holding back from gold bullion investment.

Historically that has been the pattern, a phenomenon well known to insiders that has caused individual investors to be labeled “dumb money.” But household investors aren’t dumb, they only lack the confidence to follow their instincts. So they wait to see what everybody else is doing before they act.

When we were children most of us tried at least once to wriggle out of a situation by telling our parents “But all the kids are doing it!” And invariably the response was something like “If all your friends jumped off a cliff, would you follow them?” The logic still applies today.

The mob mentality drives individuals to storm the markets in huge numbers at exactly the wrong times. They rush in to buy at the tail end of upsides and to sell as the downsides bottom out. And they do it without fail, over and over again.

For anyone who chooses not to follow the crowd, that represents a huge signal to trade. Right now the price of gold bullion is admittedly quite high, but reason dictates that it should in fact rise much, much higher. So what is holding it back? For one thing the mob has not yet turned.

Investing in gold bullion today is opportunity at its absolute best. The fundamentals add more upward pressure on the price every day and will continue driving it upward into the foreseeable future. But someday the mob will turn and a bubble is bound to form. The aggregate of individual investments is an enormous force, and when it is let loose on the gold market prices will soar to unthinkable highs.

Those who buy gold bullion today are almost certain to be faced with an enviable decision down the road. They could sell off their gold bullion investment at enormous profit or keep holding onto it as the ultimate store of wealth.

]]>http://www.gold-bullion.org/bullion/goldbullion-investing-opportunity/#13111970943664http://www.gold-bullion.org/bullion/thepriceofgoldbullion/
Mon, 18 Jul 2011 12:48:09 -0700July 18, 2011 – Another day and another barrier to the gold bullion price falls without a whimper. By midday in Europe, before stateside markets even got going, the price topped $1,600. Makes you wonder what the next knee-jerk reaction will be over here.

Bernanke, fortunately, has backed of talk of QE3, perhaps heeding the remarks of Richard Fisher, president of the Dallas FRB, that the Fed had “pressed the limits of monetary policy.” But he hasn’t stopped “QE Lite,” which has given equities the only oomph they have found since the end of QE2.

It appears the markets got hooked on the Fed’s dropping by in the morning to dump buckets of bucks picking up its own debt. Flush with new cash, banks would then buy equities and jumpstart to the day’s trading. Left to its own devices the markets have struggled, and for good reason – they are trying to correct.

Corporations have been steadily stockpiling cash for nearly ten years now, but rather than seeing that as a warning, Wall Street takes it as a sign of a strong bull market. While companies are buying up their own stock the execs are dumping theirs, and traders keep jacking up prices as profits soar. Think about that.

Record cash supplies should be cause for concern. They are a life raft for when the ship goes down. If companies were optimistic about the future they would be investing in it. Instead they are bracing for the storm.

Any new action by the Fed is guaranteed to do nothing but prolong the inevitable. The government has to step back and let the markets sweat out withdrawal from its meddling. But Wall Street has been operating without fear of consequences for so long, I doubt it remembers much about the fundamentals and traders stand to get pretty banged up. When they do you can bet they’ll run crying to Uncle Ben to do something to make it all better.

It will take a long time for the markets to completely heal, even without any further interference from the Fed. Our economy will take decades to fully recover from the damage done by reckless fiscal policy.

]]>July 18, 2011 – Another day and another barrier to the gold bullion price falls without a whimper. By midday in Europe, before stateside markets even got going, the price topped $1,600. Makes you wonder what the next knee-jerk reaction will be over here.

Bernanke, fortunately, has backed of talk of QE3, perhaps heeding the remarks of Richard Fisher, president of the Dallas FRB, that the Fed had “pressed the limits of monetary policy.” But he hasn’t stopped “QE Lite,” which has given equities the only oomph they have found since the end of QE2.

It appears the markets got hooked on the Fed’s dropping by in the morning to dump buckets of bucks picking up its own debt. Flush with new cash, banks would then buy equities and jumpstart to the day’s trading. Left to its own devices the markets have struggled, and for good reason – they are trying to correct.

Corporations have been steadily stockpiling cash for nearly ten years now, but rather than seeing that as a warning, Wall Street takes it as a sign of a strong bull market. While companies are buying up their own stock the execs are dumping theirs, and traders keep jacking up prices as profits soar. Think about that.

Record cash supplies should be cause for concern. They are a life raft for when the ship goes down. If companies were optimistic about the future they would be investing in it. Instead they are bracing for the storm.

Any new action by the Fed is guaranteed to do nothing but prolong the inevitable. The government has to step back and let the markets sweat out withdrawal from its meddling. But Wall Street has been operating without fear of consequences for so long, I doubt it remembers much about the fundamentals and traders stand to get pretty banged up. When they do you can bet they’ll run crying to Uncle Ben to do something to make it all better.

It will take a long time for the markets to completely heal, even without any further interference from the Fed. Our economy will take decades to fully recover from the damage done by reckless fiscal policy.

]]>http://www.gold-bullion.org/bullion/thepriceofgoldbullion/#13110184893660http://www.gold-bullion.org/bullion/buygoldbullion/
Fri, 15 Jul 2011 12:59:01 -0700July 15, 2011 – The economy is no longer hinting that you should buy gold bullion. It is shouting. As the deadline for averting the greatest fiscal calamity in America’s history draws near, the last bastions of reason are in full retreat.

Just the mere mention of QE3 should send shivers down the spine of every rational person, yet Bernanke has made it abundantly clear that he still believes in magic. And our leaders are bound and determined to put America’s future up as table stakes in their penny ante game of politics.

As if there could be any doubt about where they stand, Bernanke’s Wall Street cronies have rallied, salivating over the thought of billions more in free money. Throughout this whole sordid affair, not one single person has risen in support of the American people. Maybe we just don’t want it enough.

After all, we keep demanding the impossible too. We all want spending cuts, just none that affect us personally. We even want more taxes, as long as our own don’t go up. What America wants is exactly what Bernanke suggests: magic. What America needs is leadership.

Leadership runs on trust and respect. If we believe that our leaders respect us, that they are making an honest effort to understand our concerns and needs, and that they are acting in our best interests, then we will respect them. If our leaders are open and trust us to handle the cold hard truth and to do our share for the common good, then we will trust them to lead us through the most difficult times.

Fat chance of that happening any time soon. So things will get worse – a whole lot worse. The day will eventually come when enough Americans have suffered enough to turn things around. I believe that time is not in the distant future – it is just around the bend.

America cannot survive in isolation and the world is weary of our games. We are very close to the point where the lesser evil is to step back, let us collapse, then pick up the pieces. – the breakaway is a lot closer than you may think.

]]>July 15, 2011 – The economy is no longer hinting that you should buy gold bullion. It is shouting. As the deadline for averting the greatest fiscal calamity in America’s history draws near, the last bastions of reason are in full retreat.

Just the mere mention of QE3 should send shivers down the spine of every rational person, yet Bernanke has made it abundantly clear that he still believes in magic. And our leaders are bound and determined to put America’s future up as table stakes in their penny ante game of politics.

As if there could be any doubt about where they stand, Bernanke’s Wall Street cronies have rallied, salivating over the thought of billions more in free money. Throughout this whole sordid affair, not one single person has risen in support of the American people. Maybe we just don’t want it enough.

After all, we keep demanding the impossible too. We all want spending cuts, just none that affect us personally. We even want more taxes, as long as our own don’t go up. What America wants is exactly what Bernanke suggests: magic. What America needs is leadership.

Leadership runs on trust and respect. If we believe that our leaders respect us, that they are making an honest effort to understand our concerns and needs, and that they are acting in our best interests, then we will respect them. If our leaders are open and trust us to handle the cold hard truth and to do our share for the common good, then we will trust them to lead us through the most difficult times.

Fat chance of that happening any time soon. So things will get worse – a whole lot worse. The day will eventually come when enough Americans have suffered enough to turn things around. I believe that time is not in the distant future – it is just around the bend.

America cannot survive in isolation and the world is weary of our games. We are very close to the point where the lesser evil is to step back, let us collapse, then pick up the pieces. – the breakaway is a lot closer than you may think.

]]>http://www.gold-bullion.org/bullion/buygoldbullion/#13107599413657http://www.gold-bullion.org/bullion/dollartanks-buygoldbullion/
Wed, 13 Jul 2011 14:03:15 -0700July 13, 2011 – As the anniversary of QE2 approaches do not be surprised if gold bullion prices finally break away, or more precisely, the dollar tanks.

Whether our politicians can get their minds off reelection for just a moment t get serious about the impending default is immaterial. Since 2007 America’s only economic strength has been ill- conceived reverence for the dollar backed by faith in the leadership of this country. But that faith got lost long ago amidst the endless infantile bickering.

Our economic policy has made it abundantly clear to everyone sufficiently distant from Capitol Hill that the Fed has run amok. Even half of the committee has come forward and confirmed it. Bernanke, however, isn’t fazed. There have been some unforeseen speed bumps and a few detours, but the economy is doing OK. That’s his story and he’s sticking to it.

Since the equities rally is all Bernanke can point to in his defense, it bears looking into. Back on August 27 it took roughly 1096 Swiss francs to buy the S&P 500 but thanks to the Fed that has soared to 1098 today – a stunning 0.16% growth. In terms of gold, however, the index fell by 2%. The Dow did not fare any better, falling 0.5% in francs and 2.6% in terms of gold.

Still, if you had invested $100,000 in the S&P 500 back then you would have made a handsome gain of over $23,000. That’s jaw dropping, at least on the surface, and it’s all the politicians need to buffalo Americans – at least until elections. Never mind the fact that had you bought gold bullion instead you now be $2,500 richer.

One need only listen to what the markets are saying to see through all the propaganda the government keeps pumping out. They tell us that equities are going nowhere, that bonds are racing downhill like a one-man luge, and that the greenback is withering on the vine.

And the markets are almost shouting the warning to buy gold bullion now because the price is about to break away.

]]>July 13, 2011 – As the anniversary of QE2 approaches do not be surprised if gold bullion prices finally break away, or more precisely, the dollar tanks.

Whether our politicians can get their minds off reelection for just a moment t get serious about the impending default is immaterial. Since 2007 America’s only economic strength has been ill- conceived reverence for the dollar backed by faith in the leadership of this country. But that faith got lost long ago amidst the endless infantile bickering.

Our economic policy has made it abundantly clear to everyone sufficiently distant from Capitol Hill that the Fed has run amok. Even half of the committee has come forward and confirmed it. Bernanke, however, isn’t fazed. There have been some unforeseen speed bumps and a few detours, but the economy is doing OK. That’s his story and he’s sticking to it.

Since the equities rally is all Bernanke can point to in his defense, it bears looking into. Back on August 27 it took roughly 1096 Swiss francs to buy the S&P 500 but thanks to the Fed that has soared to 1098 today – a stunning 0.16% growth. In terms of gold, however, the index fell by 2%. The Dow did not fare any better, falling 0.5% in francs and 2.6% in terms of gold.

Still, if you had invested $100,000 in the S&P 500 back then you would have made a handsome gain of over $23,000. That’s jaw dropping, at least on the surface, and it’s all the politicians need to buffalo Americans – at least until elections. Never mind the fact that had you bought gold bullion instead you now be $2,500 richer.

One need only listen to what the markets are saying to see through all the propaganda the government keeps pumping out. They tell us that equities are going nowhere, that bonds are racing downhill like a one-man luge, and that the greenback is withering on the vine.

And the markets are almost shouting the warning to buy gold bullion now because the price is about to break away.

]]>http://www.gold-bullion.org/bullion/dollartanks-buygoldbullion/#13105909953653http://www.gold-bullion.org/bullion/futureof-goldbullion-investments/
Fri, 08 Jul 2011 12:34:21 -0700July 08, 2011 – We all know what opinions are like and why, but I will step out on a limb and give mine for the future of gold bullion investments: too good to be true. The entire world is entering unchartered waters rife with unknown dangers. We have built a global economy without a foundation, dependant solely on fiat currency. And it is quickly falling apart.

More than two centuries ago Voltaire warned that “paper money eventually returns to its intrinsic value — zero.” American economist Frank A. Fetter told us early in the last century that fiat money breeds political intrigue and popular misunderstanding, which above all else makes it “n general a poor kind of money.” In The Purchasing Power of Money Irving Fisher tells us “irredeemable paper money has almost invariably proved a curse to the country employing it.”

What is the real problem with paper money? My dad was so fond of saying, “money doesn’t grow on trees,” but he was wrong. That is precisely where paper money comes from, and it has precisely the value of leaves when it is created in excess of the real productivity it supports. Whenever the government steps in to inflate the money supply it does so through credit expansion.

“As a consequence, the economy's overall debt load keeps growing at a faster rate over time than real incomes do, leading to a situation of overindebtedness. This process is of course accompanied by the piling up of massive government debt,” says Thorsten Polleit of the Ludwig von Mises Institute.

The institute’s namesake understood that artificially lowering interest rates fixes nothing, and inevitably must create even graver problems: “There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”

It surely doesn’t look like anybody is willing to abandon credit expansion, so that leaves catastrophe – in the form of the end of the fiat money era and the return to real money. Countries such as Switzerland and Venezuela are already there, with nearly 100% of their currency covered by gold reserves. If the entire global money supply were to have that backing gold bullion would be worth $60,000 per ounce.

No, I’m not saying gold will get to that price (although nothing says it couldn’t). I will say, however, that the future value of gold bullion investments made today could easily exceed your wildest expectations.

]]>July 08, 2011 – We all know what opinions are like and why, but I will step out on a limb and give mine for the future of gold bullion investments: too good to be true. The entire world is entering unchartered waters rife with unknown dangers. We have built a global economy without a foundation, dependant solely on fiat currency. And it is quickly falling apart.

More than two centuries ago Voltaire warned that “paper money eventually returns to its intrinsic value — zero.” American economist Frank A. Fetter told us early in the last century that fiat money breeds political intrigue and popular misunderstanding, which above all else makes it “n general a poor kind of money.” In The Purchasing Power of Money Irving Fisher tells us “irredeemable paper money has almost invariably proved a curse to the country employing it.”

What is the real problem with paper money? My dad was so fond of saying, “money doesn’t grow on trees,” but he was wrong. That is precisely where paper money comes from, and it has precisely the value of leaves when it is created in excess of the real productivity it supports. Whenever the government steps in to inflate the money supply it does so through credit expansion.

“As a consequence, the economy's overall debt load keeps growing at a faster rate over time than real incomes do, leading to a situation of overindebtedness. This process is of course accompanied by the piling up of massive government debt,” says Thorsten Polleit of the Ludwig von Mises Institute.

The institute’s namesake understood that artificially lowering interest rates fixes nothing, and inevitably must create even graver problems: “There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”

It surely doesn’t look like anybody is willing to abandon credit expansion, so that leaves catastrophe – in the form of the end of the fiat money era and the return to real money. Countries such as Switzerland and Venezuela are already there, with nearly 100% of their currency covered by gold reserves. If the entire global money supply were to have that backing gold bullion would be worth $60,000 per ounce.

No, I’m not saying gold will get to that price (although nothing says it couldn’t). I will say, however, that the future value of gold bullion investments made today could easily exceed your wildest expectations.

Mainstream commentary has done its best to convince us that everything is under control and there is no real cause for concern, but because “so many financial commentators have a vested interest in economic growth, the line between wishful thinking and real analysis can be a moving target.” None-the-less it gets more difficult every day to dismiss everything we observe first hand.

“Low interest rates and high debt,” Cohen explains, has created a “cruel paradox”: Any significant improvement in the economy would lead to rising interest rates, consequently increasing the cost of servicing the debt and constricting cash flow, thereby countering any growth that had been realized.

The overarching question, as Cohen sees it, is whether American voters have the necessary economic literacy to fully understand the paradox and to do what must be done. In reality, however, that question is moot. All we need do is open our eyes to the realities surrounding us and let common sense prevail over emotion.

There can be no recovery without fundament change, a restoration of our government to its constitutionally defined roll. The government must realize and publicly admit that a century of misguided policy has failed miserably, rendering it incapable of sustaining the status quo. The people must accept that cold truth and be willing to take back responsibility for our own lives and to fulfill our duty as active participants in our own governance.

That is a tall order, and it calls for great individual sacrifice. But the rebirth of a democracy defined by the ideals put forth in our Constitution will bring incalculable rewards for both individuals and the nation as a whole. I believe Americans still have what it takes to start anew and earn the pride we feel for our great country. Our government, I fear, does not.

Chances are that the government will continue to struggle against the current until it finally gets pulled under. But America is not the government, it is the spirit vested in its people. We owe it to ourselves and to the future to let go of its shirtsleeves and not let it drag us down as well.

When we invest in gold bullion we take the first step towards the rebirth of America as it was intended to be.

]]>June 13, 2011 – Sometimes it helps to look at America from someone else’s perspective to fully grasp the urgency of making gold bullion investments. In South Africa’s BusinessDay Tim Cohen poses this question: “are voters sensible, farsighted and broadminded enough to vote for fewer services or higher taxes” to help turn the economy around?

Mainstream commentary has done its best to convince us that everything is under control and there is no real cause for concern, but because “so many financial commentators have a vested interest in economic growth, the line between wishful thinking and real analysis can be a moving target.” None-the-less it gets more difficult every day to dismiss everything we observe first hand.

“Low interest rates and high debt,” Cohen explains, has created a “cruel paradox”: Any significant improvement in the economy would lead to rising interest rates, consequently increasing the cost of servicing the debt and constricting cash flow, thereby countering any growth that had been realized.

The overarching question, as Cohen sees it, is whether American voters have the necessary economic literacy to fully understand the paradox and to do what must be done. In reality, however, that question is moot. All we need do is open our eyes to the realities surrounding us and let common sense prevail over emotion.

There can be no recovery without fundament change, a restoration of our government to its constitutionally defined roll. The government must realize and publicly admit that a century of misguided policy has failed miserably, rendering it incapable of sustaining the status quo. The people must accept that cold truth and be willing to take back responsibility for our own lives and to fulfill our duty as active participants in our own governance.

That is a tall order, and it calls for great individual sacrifice. But the rebirth of a democracy defined by the ideals put forth in our Constitution will bring incalculable rewards for both individuals and the nation as a whole. I believe Americans still have what it takes to start anew and earn the pride we feel for our great country. Our government, I fear, does not.

Chances are that the government will continue to struggle against the current until it finally gets pulled under. But America is not the government, it is the spirit vested in its people. We owe it to ourselves and to the future to let go of its shirtsleeves and not let it drag us down as well.

When we invest in gold bullion we take the first step towards the rebirth of America as it was intended to be.

]]>http://www.gold-bullion.org/bullion/gold-bullioninvestments/#13079953173619http://www.gold-bullion.org/bullion/gold-bullion/
Wed, 08 Jun 2011 12:39:15 -0700June 08, 2011 - In the Middle Ages alchemists strove to turn base metals into gold bullion, but they were realistic. Their other major quest was to find a potion for eternal youth – they knew the task would take more time than they had.

Alchemy fell by the wayside, but the magical thinking apparently has not. Governments still think it possible to create wealth out of debt by simply declaring fiat currency to be money, explaining Bernanke’s prediction that economic growth will rebound over the remainder of the year.

Just what does Bernanke think will get the economy moving in Q3 and Q4? More of the same, of course. According to a News Alert from the Wall Street Journal, he believes the Fed’s singularly unsuccessful policy needs to remain in place, keeping interest rates artificially low for an “extended period.” Despite that prediction, which he apparently pulled out of a hat, Bernanke concedes that the recovery is “uneven” and that “that conditions, particularly in the labor market, remain troubled.”

Americans have had their fill of such empty rhetoric and failed expectations. We have been in this quagmire too long not to see through the charade. A new Rasmussen survey reveals that a full 50% of Americans “say that there will be a 1930s-like depression in the next few years, including 26% who say it is Very Likely.”

What we are seeing is the predictable end time of the Austrian business cycle theory. Free Market Economics describes the cycle like this:

First interest rates are held below that of the free market, which encourages business to borrow heavily for long-term projects, creating a false boom in specific sectors and attracting a disproportionate inflow of people and investment into that sector. The central bank then gradually begins to raise interest rates to market value, which in turn pressures prices upward, often fueling a bubble. It becomes apparent that the sector cannot perform to investor expectations leading to a bust as money is diverted into other sectors that better reflect market fundamentals. Prices fall back to realistic levels, and unemployment rises as the sector adjusts.

The cycle repeats to where we are now, the point where “the debt burden is just too large to overcome … There is no solution to the crisis, merely a choice of which of two roads to choose, a deflationary debt collapse, or a hyperinflationary dollar collapse.”

Either way, only real money – gold bullion – is likely to survive the Fed’s modern day alchemy.

]]>June 08, 2011 - In the Middle Ages alchemists strove to turn base metals into gold bullion, but they were realistic. Their other major quest was to find a potion for eternal youth – they knew the task would take more time than they had.

Alchemy fell by the wayside, but the magical thinking apparently has not. Governments still think it possible to create wealth out of debt by simply declaring fiat currency to be money, explaining Bernanke’s prediction that economic growth will rebound over the remainder of the year.

Just what does Bernanke think will get the economy moving in Q3 and Q4? More of the same, of course. According to a News Alert from the Wall Street Journal, he believes the Fed’s singularly unsuccessful policy needs to remain in place, keeping interest rates artificially low for an “extended period.” Despite that prediction, which he apparently pulled out of a hat, Bernanke concedes that the recovery is “uneven” and that “that conditions, particularly in the labor market, remain troubled.”

Americans have had their fill of such empty rhetoric and failed expectations. We have been in this quagmire too long not to see through the charade. A new Rasmussen survey reveals that a full 50% of Americans “say that there will be a 1930s-like depression in the next few years, including 26% who say it is Very Likely.”

What we are seeing is the predictable end time of the Austrian business cycle theory. Free Market Economics describes the cycle like this:

First interest rates are held below that of the free market, which encourages business to borrow heavily for long-term projects, creating a false boom in specific sectors and attracting a disproportionate inflow of people and investment into that sector. The central bank then gradually begins to raise interest rates to market value, which in turn pressures prices upward, often fueling a bubble. It becomes apparent that the sector cannot perform to investor expectations leading to a bust as money is diverted into other sectors that better reflect market fundamentals. Prices fall back to realistic levels, and unemployment rises as the sector adjusts.

The cycle repeats to where we are now, the point where “the debt burden is just too large to overcome … There is no solution to the crisis, merely a choice of which of two roads to choose, a deflationary debt collapse, or a hyperinflationary dollar collapse.”

Either way, only real money – gold bullion – is likely to survive the Fed’s modern day alchemy.

]]>http://www.gold-bullion.org/bullion/gold-bullion/#13075619553615http://www.gold-bullion.org/bullion/gold-bullion-rush/
Mon, 06 Jun 2011 11:50:50 -0700June 06, 2011 – The new gold bullion rush will begin when the American people have an epiphany, when en masse they understand the seriousness of the economic crisis and become willing to do whatever is necessary to survive.

The Wall Street Journal’s Peggy Noonan suggests we may already be there. “The American establishment has finally come around, in unison,” she writes, “to admitting that America is in crisis, that our debt actually threatens our ability to endure, that if we don't make progress on this, we are going to near our endpoint as a nation.”

Ms. Noonan’s assessment of the threat is dead on, but has the American establishment really come around to admitting it? Then why all the fuss over someone questioning how much aid we can afford to give to tornado victims? That is exactly the sort of tough questions we need to be asking. The well is dry, and there is no rain in sight. So what is holding things up?

According to Ms. Noonan the people “saw the crisis coming before most politicians did,” yet the preponderance of discourse on the subject reveals a profound disconnect between the world we perceive and reality.

“There are data demonstrating that people like government programs but not government costs,” Ms. Noonan says. “Many people feel they've personally played by all the rules and will reject any specific cuts or taxes that will put new burdens on them.”

We are accustomed to a better state of affairs, a time when we told our elected officials “to go to Washington and bring home the bacon,” as former Senator and co-chairman of President Barack Obama's debt commission Alan Simpson said. But “You can't bring home the bacon anymore, because the pig is dead.” Yet we keep asking for things that we can no longer afford.

I contend that we will have to be down for the count before we bounce back. It’s just our “Rocky” way of doing things. But we will bounce back, filled with a renewed sense of self- dependence.

With that will come a broad acceptance that only gold will preserve our wealth. The surge in individual demand will transform the gold bullion market and send prices soaring to previously unimaginable heights.

]]>June 06, 2011 – The new gold bullion rush will begin when the American people have an epiphany, when en masse they understand the seriousness of the economic crisis and become willing to do whatever is necessary to survive.

The Wall Street Journal’s Peggy Noonan suggests we may already be there. “The American establishment has finally come around, in unison,” she writes, “to admitting that America is in crisis, that our debt actually threatens our ability to endure, that if we don't make progress on this, we are going to near our endpoint as a nation.”

Ms. Noonan’s assessment of the threat is dead on, but has the American establishment really come around to admitting it? Then why all the fuss over someone questioning how much aid we can afford to give to tornado victims? That is exactly the sort of tough questions we need to be asking. The well is dry, and there is no rain in sight. So what is holding things up?

According to Ms. Noonan the people “saw the crisis coming before most politicians did,” yet the preponderance of discourse on the subject reveals a profound disconnect between the world we perceive and reality.

“There are data demonstrating that people like government programs but not government costs,” Ms. Noonan says. “Many people feel they've personally played by all the rules and will reject any specific cuts or taxes that will put new burdens on them.”

We are accustomed to a better state of affairs, a time when we told our elected officials “to go to Washington and bring home the bacon,” as former Senator and co-chairman of President Barack Obama's debt commission Alan Simpson said. But “You can't bring home the bacon anymore, because the pig is dead.” Yet we keep asking for things that we can no longer afford.

I contend that we will have to be down for the count before we bounce back. It’s just our “Rocky” way of doing things. But we will bounce back, filled with a renewed sense of self- dependence.

With that will come a broad acceptance that only gold will preserve our wealth. The surge in individual demand will transform the gold bullion market and send prices soaring to previously unimaginable heights.

]]>http://www.gold-bullion.org/bullion/gold-bullion-rush/#13073862503609http://www.gold-bullion.org/bullion/goldbullion-dollarbubble/
Wed, 01 Jun 2011 15:18:47 -0700June 01, 2011 – The argument that gold bullion prices are in a bubble never seems to go away. So let’s look at some interesting statistics put together by the PFS Group, as reported by Chris Puplava in Uncommon Sense, that correlates the US monetary base to the value of government held gold bullion.

When the last secular gold market began in the 1970s only 17.8% of the monetary base was backed by gold. At first the run on gold bullion merely brought that figure up to a more reasonable 58%, but after a brief decline it rapidly climbed to the 1980 peak where the government’s gold represented some 31% more than the entire monetary base. That’s what a true bubble looks like.

Now consider the relationship today. The price of gold bullion would have to climb to about $1,700 just to reach the point where the last secular bull market began. For the government’s reserve of gold bullion to represent just 25% of the monetary base would require a price of more than $2,380 per ounce, and a sound 50% backing would take double that amount.

In a bubble prices escalate past a cutoff point for demand, such as we experienced in technology companies at the turn of the century and the housing market in 2005-2006, resulting in a supply glut. “Since 1990 the monetary base has grown by 570% thanks to the Federal Reserve, while global gold production has grown by a mere 21%,” Puplava says. The glut in supply clearly is not with gold bullion – it is with the US dollar.

Throughout the final decade of the last century the growth in the monetary supply was gradual relative to gold bullion production, indicative of the relative health of the greenback. But then the Fed began cranking out freshly printed bills and in just two years supply spiked 400% - looking by all definitions like a bubble ready to burst.

The world’s reserve currency being in a bubble is hard to contemplate, but the bubble bursting is almost impossible to imagine. With our monetary base inflated to the current level, however, a burst is inevitable. No soft asset will be able to escape unscathed, and only the strongest currencies will survive.

The rising price of gold is but a reflection of the decay of fiat money, and it will continue to rise until worth is restored to surviving currencies. The ultimate fate of the dollar depends a lot on how extreme the measures are that we allow our government to take, and so far it doesn’t look good.

It is almost impossible to imagine the price of gold leveling out before a minimum of 25% of our money supply is supported. Even at $2,500 per ounce it would be hard to convince me that the long-espoused bubble in gold bullion had actually formed.

]]>June 01, 2011 – The argument that gold bullion prices are in a bubble never seems to go away. So let’s look at some interesting statistics put together by the PFS Group, as reported by Chris Puplava in Uncommon Sense, that correlates the US monetary base to the value of government held gold bullion.

When the last secular gold market began in the 1970s only 17.8% of the monetary base was backed by gold. At first the run on gold bullion merely brought that figure up to a more reasonable 58%, but after a brief decline it rapidly climbed to the 1980 peak where the government’s gold represented some 31% more than the entire monetary base. That’s what a true bubble looks like.

Now consider the relationship today. The price of gold bullion would have to climb to about $1,700 just to reach the point where the last secular bull market began. For the government’s reserve of gold bullion to represent just 25% of the monetary base would require a price of more than $2,380 per ounce, and a sound 50% backing would take double that amount.

In a bubble prices escalate past a cutoff point for demand, such as we experienced in technology companies at the turn of the century and the housing market in 2005-2006, resulting in a supply glut. “Since 1990 the monetary base has grown by 570% thanks to the Federal Reserve, while global gold production has grown by a mere 21%,” Puplava says. The glut in supply clearly is not with gold bullion – it is with the US dollar.

Throughout the final decade of the last century the growth in the monetary supply was gradual relative to gold bullion production, indicative of the relative health of the greenback. But then the Fed began cranking out freshly printed bills and in just two years supply spiked 400% - looking by all definitions like a bubble ready to burst.

The world’s reserve currency being in a bubble is hard to contemplate, but the bubble bursting is almost impossible to imagine. With our monetary base inflated to the current level, however, a burst is inevitable. No soft asset will be able to escape unscathed, and only the strongest currencies will survive.

The rising price of gold is but a reflection of the decay of fiat money, and it will continue to rise until worth is restored to surviving currencies. The ultimate fate of the dollar depends a lot on how extreme the measures are that we allow our government to take, and so far it doesn’t look good.

It is almost impossible to imagine the price of gold leveling out before a minimum of 25% of our money supply is supported. Even at $2,500 per ounce it would be hard to convince me that the long-espoused bubble in gold bullion had actually formed.

]]>http://www.gold-bullion.org/bullion/goldbullion-dollarbubble/#13069667273605http://www.gold-bullion.org/bullion/gold-bullion-haven/
Fri, 27 May 2011 12:26:48 -0700May 27, 2011 – Interest in buying gold bullion is once again being sparked by disappointing economic “news.” But who is actually surprised that our economic “growth” is slowing down? For most of us that translates to the decline is speeding up – just as predicted.

Economists, ever the optimistic (or deluded) predicted a 2% drop in home sales last month, but not surprising to us who drive by countless for sale signs on overgrown lawns every day, the real figure was nearly six times greater.

Now even the majority of Wall Street’s high rollers are predicting the Fed will be forced to keep interest rates down after the end of QE2. With the Fed out of the bond buying business, our already overstressed economy is all but certain to nosedive even further.

As worry spreads over the dollar’s future we are seeing the same old frenzy among investors as they scurry about looking for higher interest rates. This is where it seems to me that common sense takes flight. They flock to other currencies, in this case even to the euro – which definitely is not without its own concerns. The problem is that investors have a one track mind – that if their capital isn’t making them money, then they are losing out.

But all the interest in the world isn’t going to compensate for a rapidly declining dollar. Ten thousand percent of nothing is still nothing. Investors seeking a store of wealth should think about that term. Physically held gold bullion is the ideal means of storing wealth.

Gold bullion bought today and put into secure storage will represent the same wealth years and even decades down the road. But, as has been consistently demonstrated over the past several decades, currency and paper assets are far more likely to erode wealth over time.

Still, the siren song of returns keeps investors from making the prudent move to store a sizeable chunk of their capital in gold bullion. They opt instead for illusory gains measured in a rapidly diminishing currency. They want their money to make money – but their money isn’t real money at all. And the money it makes is worth less every day.

Real money cannot lose its worth. It cannot inflate and it cannot deflate. It simply is. And what it is today it was 100 years ago and will be 100 years hence.

Gold bullion is real money, and to me that’s a whole lot better than any contrived piece of paper.

]]>May 27, 2011 – Interest in buying gold bullion is once again being sparked by disappointing economic “news.” But who is actually surprised that our economic “growth” is slowing down? For most of us that translates to the decline is speeding up – just as predicted.

Economists, ever the optimistic (or deluded) predicted a 2% drop in home sales last month, but not surprising to us who drive by countless for sale signs on overgrown lawns every day, the real figure was nearly six times greater.

Now even the majority of Wall Street’s high rollers are predicting the Fed will be forced to keep interest rates down after the end of QE2. With the Fed out of the bond buying business, our already overstressed economy is all but certain to nosedive even further.

As worry spreads over the dollar’s future we are seeing the same old frenzy among investors as they scurry about looking for higher interest rates. This is where it seems to me that common sense takes flight. They flock to other currencies, in this case even to the euro – which definitely is not without its own concerns. The problem is that investors have a one track mind – that if their capital isn’t making them money, then they are losing out.

But all the interest in the world isn’t going to compensate for a rapidly declining dollar. Ten thousand percent of nothing is still nothing. Investors seeking a store of wealth should think about that term. Physically held gold bullion is the ideal means of storing wealth.

Gold bullion bought today and put into secure storage will represent the same wealth years and even decades down the road. But, as has been consistently demonstrated over the past several decades, currency and paper assets are far more likely to erode wealth over time.

Still, the siren song of returns keeps investors from making the prudent move to store a sizeable chunk of their capital in gold bullion. They opt instead for illusory gains measured in a rapidly diminishing currency. They want their money to make money – but their money isn’t real money at all. And the money it makes is worth less every day.

Real money cannot lose its worth. It cannot inflate and it cannot deflate. It simply is. And what it is today it was 100 years ago and will be 100 years hence.

Gold bullion is real money, and to me that’s a whole lot better than any contrived piece of paper.

]]>http://www.gold-bullion.org/bullion/gold-bullion-haven/#13065244083601http://www.gold-bullion.org/bullion/physical-gold-bullion/
Mon, 23 May 2011 09:50:24 -0700May 23, 2011 – It’s official: Thursday the World Gold Council declared China is now the largest consumer of physical gold bullion, with a whopping 225% first-quarter year over year increase in purchases. More significant, India, now in second place, did not slow down its own consumption.

By any measure that represents a huge increase in demand, which Commerzbank analysts say gives “cause for optimism that the price will sustain its long-lasting rally,” according to the Wall Street Journal. The gold price responded early today, climbing past $1,500.

Goldman Sachs Group’s commodity research team told Bloomberg that “Gold is simply pricing sovereign default risk, it still remains a big issue … [and] that kind of risk will continue to support gold prices.”

On May 25 the Fed will counter that risk with the release of its revised figures for first quarter GDP growth, which I expect will be another smoke and mirrors sideshow. But “gross domestic product is used to measure a country’s economic growth and standard of living. It measures neither,” Research Affiliates’ chairman Rob Arnott told Brian Milner in the Toronto Globe and Mail. “GDP measures spending. It does not measure prosperity.”

When consumption if financed through debt, prosperity declines – it doesn’t grow. Arnott proposes a more realistic evaluation that he calls “structural GDP,” which excludes deficit spending. By that measure the per capita GDP “has fallen back to levels not seen since 1998.” Not coincidentally, the GDP exclusive of government spending is also at the 1998 level. “What we find is that this recession is horrific.”

The average consumer has been saying that all along and they are getting tired of hearing Bernanke trying to convince us it is otherwise. “Now is a wonderful time to have a very defensive investment posture,” Arnott says. “As deficit-spending is reined in, either voluntarily or because the capital markets choke on new debt” we can expect the markets to be driven “massively lower.”

We can also expect a strong position in physical gold bullion to provide us with that “very defensive investment posture.”

]]>May 23, 2011 – It’s official: Thursday the World Gold Council declared China is now the largest consumer of physical gold bullion, with a whopping 225% first-quarter year over year increase in purchases. More significant, India, now in second place, did not slow down its own consumption.

By any measure that represents a huge increase in demand, which Commerzbank analysts say gives “cause for optimism that the price will sustain its long-lasting rally,” according to the Wall Street Journal. The gold price responded early today, climbing past $1,500.

Goldman Sachs Group’s commodity research team told Bloomberg that “Gold is simply pricing sovereign default risk, it still remains a big issue … [and] that kind of risk will continue to support gold prices.”

On May 25 the Fed will counter that risk with the release of its revised figures for first quarter GDP growth, which I expect will be another smoke and mirrors sideshow. But “gross domestic product is used to measure a country’s economic growth and standard of living. It measures neither,” Research Affiliates’ chairman Rob Arnott told Brian Milner in the Toronto Globe and Mail. “GDP measures spending. It does not measure prosperity.”

When consumption if financed through debt, prosperity declines – it doesn’t grow. Arnott proposes a more realistic evaluation that he calls “structural GDP,” which excludes deficit spending. By that measure the per capita GDP “has fallen back to levels not seen since 1998.” Not coincidentally, the GDP exclusive of government spending is also at the 1998 level. “What we find is that this recession is horrific.”

The average consumer has been saying that all along and they are getting tired of hearing Bernanke trying to convince us it is otherwise. “Now is a wonderful time to have a very defensive investment posture,” Arnott says. “As deficit-spending is reined in, either voluntarily or because the capital markets choke on new debt” we can expect the markets to be driven “massively lower.”

We can also expect a strong position in physical gold bullion to provide us with that “very defensive investment posture.”

]]>http://www.gold-bullion.org/bullion/physical-gold-bullion/#13061694243597http://www.gold-bullion.org/bullion/bullion-gold-coins/
Wed, 18 May 2011 13:40:58 -0700May 18, 2011 – If you listen to the “common wisdom” of economic pundits you might get the impression that gold bullion investing is no different from rolling the commodity dice. Gold’s bad rap, however, comes from the Wall Street mindset that has totally perverted the original concept of market participation.

On Wall Street the game is all about money making more money out of thin air, so every investment is weighed by how many dollars it produces. It is true that when you purchase gold bullion and store it in a safe-deposit box, when you return at a later time you will not find a stack of greenbacks that the gold produced. Gold’s appreciation may produce dollars in a sense, but only because the dollar has lost value. Likewise the growth of dollar-based assets is likely to accounted for by the same thing.

Wall Street logic is no different from our government’s. For example, Irwin Kellner points out in MarketWatch how market bulls seized on the April retail sales report as positive news that the economy was growing. After all, consumer spending is 70% of our GDP. But there’s one tiny flaw in that logic.

March’s 0.9% growth in sales and April’s 0.5% growth “were largely due to rising prices; in real, or unit, terms, sales were flat — if not down, month over month,” says Kellner. To see how that works, consider gasoline sales.

In March “the dollar value of gasoline sales rose 4.1% ,” but by volume sales were down. Likewise in April “a drop of 0.6% in actual gallons bought [turned] into an increase of 2.7% in dollars rung up at the register.”

It is as insane to use a declining currency to evaluate an investment as it is to use it to gauge the state of the economy. But both our government and Wall Street (if indeed they can be separated) do so make things appear much better than they really are.

There is a whole lot more to buying gold bullion than speculation – it’s true worth is in regular, long-term investments. True, gold just sits there, holding its value by the only important measure – purchasing power. But over the long haul, the wealth held in gold bullion can easily outstrip all of the cheapened dollar gains of traditional investments.

]]>May 18, 2011 – If you listen to the “common wisdom” of economic pundits you might get the impression that gold bullion investing is no different from rolling the commodity dice. Gold’s bad rap, however, comes from the Wall Street mindset that has totally perverted the original concept of market participation.

On Wall Street the game is all about money making more money out of thin air, so every investment is weighed by how many dollars it produces. It is true that when you purchase gold bullion and store it in a safe-deposit box, when you return at a later time you will not find a stack of greenbacks that the gold produced. Gold’s appreciation may produce dollars in a sense, but only because the dollar has lost value. Likewise the growth of dollar-based assets is likely to accounted for by the same thing.

Wall Street logic is no different from our government’s. For example, Irwin Kellner points out in MarketWatch how market bulls seized on the April retail sales report as positive news that the economy was growing. After all, consumer spending is 70% of our GDP. But there’s one tiny flaw in that logic.

March’s 0.9% growth in sales and April’s 0.5% growth “were largely due to rising prices; in real, or unit, terms, sales were flat — if not down, month over month,” says Kellner. To see how that works, consider gasoline sales.

In March “the dollar value of gasoline sales rose 4.1% ,” but by volume sales were down. Likewise in April “a drop of 0.6% in actual gallons bought [turned] into an increase of 2.7% in dollars rung up at the register.”

It is as insane to use a declining currency to evaluate an investment as it is to use it to gauge the state of the economy. But both our government and Wall Street (if indeed they can be separated) do so make things appear much better than they really are.

There is a whole lot more to buying gold bullion than speculation – it’s true worth is in regular, long-term investments. True, gold just sits there, holding its value by the only important measure – purchasing power. But over the long haul, the wealth held in gold bullion can easily outstrip all of the cheapened dollar gains of traditional investments.

]]>http://www.gold-bullion.org/bullion/bullion-gold-coins/#13057512583593http://www.gold-bullion.org/bullion/goldbullion-survival-investment/
Mon, 16 May 2011 11:37:38 -0700May 16, 2011 – These days every Tom, Dick, and Harry seems to have his own theory about the future of gold bullion investments, and all have mountains of statistics and enough charts to paper the walls of Congress to back up their opinions. Although the bottom line for most Americans is that we are in a drastic financial backslide, investment in gold bullion remains disproportionately light. Something is out of whack, and I think I know what it is.

Yesterday I dusted off my bicycle and went on a tour of Anytown, USA. Everywhere I went I saw mammoth SUVs, guzzling four-dollar gas just to transport one or two people around town. At the supermarket supersized folks were loading trunks with bags of stuffed full with Twinkies, soda pop, and all other sorts of nutrient-free junk.

The yards in middle class neighborhoods sported a vast array of jet skis, speedboats, motorcycles, and four-wheelers – every conceivable means to strap a motor to ones butt to get from here to here. RVs, from camping trailers to the Taj Mahal on wheels were everywhere. And people were mowing their quarter acre yards with massive John Deere riding mowers.

Normally such mindless consumption puts me off, but this time I saw something different. The sheer mass of the aggregate equity I was seeing boggled my mind. When I extrapolated that of my microcosm to the entirety of the USA I finally saw the source of America’s denial.

How could a country go broke amidst so much material wealth? Well, ask anybody who has ever held a yard sale. The global economy requires new production and consumption – nothing is gained by reselling so almost all used consumer goods have zero net value. All of the “wealth” I was seeing was but a testament to the way things were.

Americans face the very real threat of hyperinflation, very possibly within the next few years. It would be a catastrophe unlike anything we have ever experienced before. Money will become worthless, as will all of the relics of consumerism. Social order will likely dissolve as food and other necessities become scarce; power will belong to those who control the supply.

Eventually a substitute means of exchange will evolve and order will return. But getting through the dark times will take reserves of gold, the one timeless and borderless currency. Wherever the price heads today is immaterial; the return on gold bullion investments might very well be nothing less than survival.

]]>May 16, 2011 – These days every Tom, Dick, and Harry seems to have his own theory about the future of gold bullion investments, and all have mountains of statistics and enough charts to paper the walls of Congress to back up their opinions. Although the bottom line for most Americans is that we are in a drastic financial backslide, investment in gold bullion remains disproportionately light. Something is out of whack, and I think I know what it is.

Yesterday I dusted off my bicycle and went on a tour of Anytown, USA. Everywhere I went I saw mammoth SUVs, guzzling four-dollar gas just to transport one or two people around town. At the supermarket supersized folks were loading trunks with bags of stuffed full with Twinkies, soda pop, and all other sorts of nutrient-free junk.

The yards in middle class neighborhoods sported a vast array of jet skis, speedboats, motorcycles, and four-wheelers – every conceivable means to strap a motor to ones butt to get from here to here. RVs, from camping trailers to the Taj Mahal on wheels were everywhere. And people were mowing their quarter acre yards with massive John Deere riding mowers.

Normally such mindless consumption puts me off, but this time I saw something different. The sheer mass of the aggregate equity I was seeing boggled my mind. When I extrapolated that of my microcosm to the entirety of the USA I finally saw the source of America’s denial.

How could a country go broke amidst so much material wealth? Well, ask anybody who has ever held a yard sale. The global economy requires new production and consumption – nothing is gained by reselling so almost all used consumer goods have zero net value. All of the “wealth” I was seeing was but a testament to the way things were.

Americans face the very real threat of hyperinflation, very possibly within the next few years. It would be a catastrophe unlike anything we have ever experienced before. Money will become worthless, as will all of the relics of consumerism. Social order will likely dissolve as food and other necessities become scarce; power will belong to those who control the supply.

Eventually a substitute means of exchange will evolve and order will return. But getting through the dark times will take reserves of gold, the one timeless and borderless currency. Wherever the price heads today is immaterial; the return on gold bullion investments might very well be nothing less than survival.

]]>http://www.gold-bullion.org/bullion/goldbullion-survival-investment/#13055710583589http://www.gold-bullion.org/bullion/goldbullionprice/
Fri, 13 May 2011 13:17:18 -0700May 13, 2011 – Gold bullion prices had quite a ride this week, just like everything else. They seem to be stuck in a loop – nudge up close to $1515, turn around, slide down $1485 or so then turn around once more then do it all again. Investors are turning into squirrels caught in the middle of the street, darting back and forth seeking some sort of safety, unaware that had they just paused for a moment to rationally assess the situation, they would long since have gotten out of harm’s way.

That is only following the typical pattern of the typical retail investor – they cautiously watch as prices climb then all of a sudden a mob forms and they rush en masse into the market. That is exactly what the insiders want them to do so they can cash in before the bubble bursts. Then, as suddenly as the mob formed, it reverses direction. Investors dump their holdings driving prices down to where the traders are now perched like vultures. That’s what they call dumb money.

Holding emotions in check is quite difficult for human beings, but it is absolutely essential to being a winning investor. In “Good to Great,” author Jim Collins describes what his team called the Stockdale Paradox: You must have unwavering faith that regardless of difficulties you will ultimately prevail and you must “at the same time have the discipline to confront the most brutal facts of your current reality.” Collins was speaking of great leaders but it is equally true for great investors.

Nobody likes looking at the unadulterated facts of our current economic situation, but we cannot even begin to make sound investment decisions until we do. The bad and the ugly are there and must be confronted before the good can be found. And that means pick a strategy and tweak it, but only at the glacial pace of real social and economical change.

If you lack the faith that you will prevail in the long run you will forever be vulnerable to mob stampedes. But if you do have the faith, you can forgo the frantic buying and selling and stay focused on dealing with the brutal facts.

Seen from that perspective, the +/- 1% gyrations in the gold bullion price really don’t mean a thing.

]]>May 13, 2011 – Gold bullion prices had quite a ride this week, just like everything else. They seem to be stuck in a loop – nudge up close to $1515, turn around, slide down $1485 or so then turn around once more then do it all again. Investors are turning into squirrels caught in the middle of the street, darting back and forth seeking some sort of safety, unaware that had they just paused for a moment to rationally assess the situation, they would long since have gotten out of harm’s way.

That is only following the typical pattern of the typical retail investor – they cautiously watch as prices climb then all of a sudden a mob forms and they rush en masse into the market. That is exactly what the insiders want them to do so they can cash in before the bubble bursts. Then, as suddenly as the mob formed, it reverses direction. Investors dump their holdings driving prices down to where the traders are now perched like vultures. That’s what they call dumb money.

Holding emotions in check is quite difficult for human beings, but it is absolutely essential to being a winning investor. In “Good to Great,” author Jim Collins describes what his team called the Stockdale Paradox: You must have unwavering faith that regardless of difficulties you will ultimately prevail and you must “at the same time have the discipline to confront the most brutal facts of your current reality.” Collins was speaking of great leaders but it is equally true for great investors.

Nobody likes looking at the unadulterated facts of our current economic situation, but we cannot even begin to make sound investment decisions until we do. The bad and the ugly are there and must be confronted before the good can be found. And that means pick a strategy and tweak it, but only at the glacial pace of real social and economical change.

If you lack the faith that you will prevail in the long run you will forever be vulnerable to mob stampedes. But if you do have the faith, you can forgo the frantic buying and selling and stay focused on dealing with the brutal facts.

Seen from that perspective, the +/- 1% gyrations in the gold bullion price really don’t mean a thing.

]]>http://www.gold-bullion.org/bullion/goldbullionprice/#13053178383587http://www.gold-bullion.org/bullion/goldbullion-investment-importance/
Wed, 11 May 2011 13:33:48 -0700May 11, 2011 – The importance of taking gold bullion investment seriously grows every day. Now matter how the government spins the news it cannot be more obvious that for every step forward we are taking two steps back.

Even the vaunted growth in exports, fueled by Bernanke’s funny money, is questionable. “The U.S. trade deficit widened by more than expected in March,” as imports outdistanced record exports by 4.9% to 4.6% according to a Wall Street Journal News Alert.

Last Friday former Federal Reserve Chairman Paul Volcker expressed grave concern that the government is running out of time. “In the light of prospects for continuing deficits, doubts about future inflation and the international stability of the dollar,” the $5 trillion of its obligations held by China, Japan and other foreign countries pose a serious threat to our economy, Volcker said.

BRICS - a major bloc of nations comprised of Brazil, Russia, India, China and South Africa – regularly meets without representation and influence by the western economies. Last month, as usual, the major topic was the continued decline of the US economy and the risk it poses to their substantial dollar reserves and their trade conducted in dollars. Consequently, BRICS is “now calling for a new global currency system to be established with a broader range of currencies involved in order to provide the necessary stability,” Daniel Zurbrügg said in Personal Liberty Digest.

It pays to take the BRICS nations seriously. Together they account for 42% of global population, nearly 20% and growing of global GDP, and 40% of the world’s currency reserves. Considering persistent rumors of a move by OPEC to a new trade basis and a growing number of agreements between nations to conduct trade in local currencies, the trend away from the dollar is inescapable.

“After being the world’s main reserve currency for many decades, the game is finally changing, and it has far-reaching consequences for the world and your investment strategy,” Zurbrügg says. PIMCO’s Bill Gross concurs. According to the company’s website the world’s largest bond fund is extending its short position on US debt and its emerging market holdings while retreating from investment grade credit, junk bonds, and mortgages.

The good news is that whatever happens to the dollar, whatever becomes the new global reserve currency, and however quickly the transition occurs, investments in gold bullion will carry wealth forward and be instantly convertible to the new global standard.

]]>May 11, 2011 – The importance of taking gold bullion investment seriously grows every day. Now matter how the government spins the news it cannot be more obvious that for every step forward we are taking two steps back.

Even the vaunted growth in exports, fueled by Bernanke’s funny money, is questionable. “The U.S. trade deficit widened by more than expected in March,” as imports outdistanced record exports by 4.9% to 4.6% according to a Wall Street Journal News Alert.

Last Friday former Federal Reserve Chairman Paul Volcker expressed grave concern that the government is running out of time. “In the light of prospects for continuing deficits, doubts about future inflation and the international stability of the dollar,” the $5 trillion of its obligations held by China, Japan and other foreign countries pose a serious threat to our economy, Volcker said.

BRICS - a major bloc of nations comprised of Brazil, Russia, India, China and South Africa – regularly meets without representation and influence by the western economies. Last month, as usual, the major topic was the continued decline of the US economy and the risk it poses to their substantial dollar reserves and their trade conducted in dollars. Consequently, BRICS is “now calling for a new global currency system to be established with a broader range of currencies involved in order to provide the necessary stability,” Daniel Zurbrügg said in Personal Liberty Digest.

It pays to take the BRICS nations seriously. Together they account for 42% of global population, nearly 20% and growing of global GDP, and 40% of the world’s currency reserves. Considering persistent rumors of a move by OPEC to a new trade basis and a growing number of agreements between nations to conduct trade in local currencies, the trend away from the dollar is inescapable.

“After being the world’s main reserve currency for many decades, the game is finally changing, and it has far-reaching consequences for the world and your investment strategy,” Zurbrügg says. PIMCO’s Bill Gross concurs. According to the company’s website the world’s largest bond fund is extending its short position on US debt and its emerging market holdings while retreating from investment grade credit, junk bonds, and mortgages.

The good news is that whatever happens to the dollar, whatever becomes the new global reserve currency, and however quickly the transition occurs, investments in gold bullion will carry wealth forward and be instantly convertible to the new global standard.

]]>http://www.gold-bullion.org/bullion/goldbullion-investment-importance/#13051460283583http://www.gold-bullion.org/bullion/gold-bullion-dip/
Tue, 10 May 2011 11:31:38 -0700May 10, 2011 – The way to win in gold bullion investment is obvious – buy in the dips and sell at the peaks. That’s what big money thought is was doing last week, but gold was in fact no where near its peak. The bubble has yet to form, contrary to popular opinion. That can occur only when market participation exceed its support level – and we are far, far from that.

So gold’s pullback from its full assault on $1600 was just to regroup and join forces with a growing number of central banks that are buying up record quantities of the metal. The window of opportunity to cash in on sub-$1500 prices has probably already passed, but the price is still a bargain, although no one can say for sure how long it will last.

Sentiment is growing in all corners that the state of our economy doesn’t match the steady stream of optimistic reports. “We have some particularly poor-quality economic reporting right now … Yes, there has been some upside bouncing in certain areas, but it's largely tied to short- lived stimulus factors,” ShadowStat’s editor John Williams said in a Gold Report interview.

That has been made apparent in the housing market, which is now expected to continue deteriorating for at least another year. The market’s temporary “improvements, spurred by federal programs that gave buyers up to $8,000 in tax credits, proved fleeting. Sales collapsed when the credits expired last summer, and prices in many markets have been falling ever since,” said Nick Timiraos and Dawn Wotapka in the Wall Street Journal.

“When all the dust settles, I think you'll see that the economy did start to turn down again in latter 2010. Somewhere in that timeframe, they'll start counting the second or next leg of a multiple-dip recession,” Williams said. “I don't think you have until 2012 before this gets out of control and there's hyperinflation … we're seeing all sorts of things happening now that are accelerating the inflation process.

The market fundamentals will not let the price of gold languish at today’s levels for very long. This is clearly not the time to sell gold bullion, it is the time to buy.

]]>May 10, 2011 – The way to win in gold bullion investment is obvious – buy in the dips and sell at the peaks. That’s what big money thought is was doing last week, but gold was in fact no where near its peak. The bubble has yet to form, contrary to popular opinion. That can occur only when market participation exceed its support level – and we are far, far from that.

So gold’s pullback from its full assault on $1600 was just to regroup and join forces with a growing number of central banks that are buying up record quantities of the metal. The window of opportunity to cash in on sub-$1500 prices has probably already passed, but the price is still a bargain, although no one can say for sure how long it will last.

Sentiment is growing in all corners that the state of our economy doesn’t match the steady stream of optimistic reports. “We have some particularly poor-quality economic reporting right now … Yes, there has been some upside bouncing in certain areas, but it's largely tied to short- lived stimulus factors,” ShadowStat’s editor John Williams said in a Gold Report interview.

That has been made apparent in the housing market, which is now expected to continue deteriorating for at least another year. The market’s temporary “improvements, spurred by federal programs that gave buyers up to $8,000 in tax credits, proved fleeting. Sales collapsed when the credits expired last summer, and prices in many markets have been falling ever since,” said Nick Timiraos and Dawn Wotapka in the Wall Street Journal.

“When all the dust settles, I think you'll see that the economy did start to turn down again in latter 2010. Somewhere in that timeframe, they'll start counting the second or next leg of a multiple-dip recession,” Williams said. “I don't think you have until 2012 before this gets out of control and there's hyperinflation … we're seeing all sorts of things happening now that are accelerating the inflation process.

The market fundamentals will not let the price of gold languish at today’s levels for very long. This is clearly not the time to sell gold bullion, it is the time to buy.

]]>http://www.gold-bullion.org/bullion/gold-bullion-dip/#13050522983579http://www.gold-bullion.org/bullion/gold-bullion-buying/
Mon, 09 May 2011 11:31:12 -0700May 09, 2011 – The time is short to take advantage of this temporary pullback in the price of gold bullion. Once again the dollar has rebounded, which according to a Dow Jones Newswire, Steven Englander, head of G10 strategy at Citigroup, attributes to “the fact that the U.S. economic data really deteriorated.” Think about that a minute.

The never ending series of negative economic news creates a risk off sentiment that drives investors to buy back their dollars. But it is the dollar’s deterioration that has led to the bad economic news – not the other way around. And now the Fed has backed itself into a corner and is in no position to ward off the second dip.

“The evidence of a double-dipping housing market and economy are becoming undeniable,” said Michael Pento in MarketWatch. “More evidence of an official double dip in home prices was found in a report from Clear Capital [stating] that its monthly index is now below the prior all- time low set in March 2009.” Furthermore, “Year-over-year national home prices are down 5% [and] home prices have dropped 11.5% in the last nine months, a rate of decline not seen since 2008.” Bernanke’s only option, other than letting the market do what it must and taking the lumps, is to continue holding off the second dip with more easing. But in the end that can make matters only worse. Sooner or later the Fed will have to get out of the business of market manipulation and let the markets seek their own equilibrium.

Nobody is expecting that to happen any time soon. In the meantime small business – widely regarded to be the vanguard of recovery – has become decidedly pessimistic about the future. “The dim assessment shows how severely small businesses' finances remain damaged by the recession nearly two years after it technically ended in June 2009,” says Business Week’s John Tozzi .

The fundamentals driving the price of gold bullion are growing stronger each day, not weaker. “Despite the recent correction, both gold and silver are in big bull markets. Until that changes, pullbacks and corrections are buying opportunities,” says Sean Brodrick in MarketWatch.

And the current pullback has created an exceptional – and most likely very brief - opportunity to invest in gold bullion.

]]>May 09, 2011 – The time is short to take advantage of this temporary pullback in the price of gold bullion. Once again the dollar has rebounded, which according to a Dow Jones Newswire, Steven Englander, head of G10 strategy at Citigroup, attributes to “the fact that the U.S. economic data really deteriorated.” Think about that a minute.

The never ending series of negative economic news creates a risk off sentiment that drives investors to buy back their dollars. But it is the dollar’s deterioration that has led to the bad economic news – not the other way around. And now the Fed has backed itself into a corner and is in no position to ward off the second dip.

“The evidence of a double-dipping housing market and economy are becoming undeniable,” said Michael Pento in MarketWatch. “More evidence of an official double dip in home prices was found in a report from Clear Capital [stating] that its monthly index is now below the prior all- time low set in March 2009.” Furthermore, “Year-over-year national home prices are down 5% [and] home prices have dropped 11.5% in the last nine months, a rate of decline not seen since 2008.” Bernanke’s only option, other than letting the market do what it must and taking the lumps, is to continue holding off the second dip with more easing. But in the end that can make matters only worse. Sooner or later the Fed will have to get out of the business of market manipulation and let the markets seek their own equilibrium.

Nobody is expecting that to happen any time soon. In the meantime small business – widely regarded to be the vanguard of recovery – has become decidedly pessimistic about the future. “The dim assessment shows how severely small businesses' finances remain damaged by the recession nearly two years after it technically ended in June 2009,” says Business Week’s John Tozzi .

The fundamentals driving the price of gold bullion are growing stronger each day, not weaker. “Despite the recent correction, both gold and silver are in big bull markets. Until that changes, pullbacks and corrections are buying opportunities,” says Sean Brodrick in MarketWatch.

And the current pullback has created an exceptional – and most likely very brief - opportunity to invest in gold bullion.

]]>http://www.gold-bullion.org/bullion/gold-bullion-buying/#13049658723575http://www.gold-bullion.org/bullion/goldbullion-investments-opportunity/
Wed, 04 May 2011 12:02:32 -0700May 04, 2011 – A sure sign of a sorry economy is when the death of one man, an event which has no bearing at all on the economy, sends the dollar up and gold bullion down. With the real truth staring people in the face they are still desperately trying to believe the good times are just around the corner.

But we are no safer today. The terrorists have had 10 years to prepare revenge should we kill Ben Laden. Still, it had to be done and in getting it done we have learned an invaluable lesson.

The strategy of the war against terrorism is not one of overpowering presence, as it was during the cold war, but one of supremacy in small engagements. This operation was a success because it pitted our best intelligence and best special forces against what we must presume was a small band of the Taliban’s best. And the task was achieved in hostile territory without the thought of nation building, conquest, or apology.

The point is that if we seriously want to get the job done we don’t need 2.5 million people on the Federal payroll in 823 military bases overseas. The cost of maintaining an antiquated defense against an extinct threat consumes far too much of our scarce resources.

We can no longer afford to play global referee. We can no longer afford to proselytize our lifestyle. We can no longer substitute power for production. And we can no longer tend more to the world’s wounds than we do to our own. If we focused on the real threats of today rather than the ghost threats of the past we could pull out of this quagmire and start a real recovery, all the while protecting our vital interests.

I don’t want to rain on any parades, but these are exceptional times and they call for vigilance and a strong, unemotional perspective. Gold is not going down, emotions are going up.

Emotions are chaos, however, and in the long term chaos averages out. Gold, on the other hand, continues on the same long-term trend.

]]>May 04, 2011 – A sure sign of a sorry economy is when the death of one man, an event which has no bearing at all on the economy, sends the dollar up and gold bullion down. With the real truth staring people in the face they are still desperately trying to believe the good times are just around the corner.

But we are no safer today. The terrorists have had 10 years to prepare revenge should we kill Ben Laden. Still, it had to be done and in getting it done we have learned an invaluable lesson.

The strategy of the war against terrorism is not one of overpowering presence, as it was during the cold war, but one of supremacy in small engagements. This operation was a success because it pitted our best intelligence and best special forces against what we must presume was a small band of the Taliban’s best. And the task was achieved in hostile territory without the thought of nation building, conquest, or apology.

The point is that if we seriously want to get the job done we don’t need 2.5 million people on the Federal payroll in 823 military bases overseas. The cost of maintaining an antiquated defense against an extinct threat consumes far too much of our scarce resources.

We can no longer afford to play global referee. We can no longer afford to proselytize our lifestyle. We can no longer substitute power for production. And we can no longer tend more to the world’s wounds than we do to our own. If we focused on the real threats of today rather than the ghost threats of the past we could pull out of this quagmire and start a real recovery, all the while protecting our vital interests.

I don’t want to rain on any parades, but these are exceptional times and they call for vigilance and a strong, unemotional perspective. Gold is not going down, emotions are going up.

Emotions are chaos, however, and in the long term chaos averages out. Gold, on the other hand, continues on the same long-term trend.

]]>http://www.gold-bullion.org/bullion/goldbullion-investments-opportunity/#13045357523571http://www.gold-bullion.org/bullion/shelter-goldbullion-investments/
Mon, 02 May 2011 12:09:11 -0700May 02, 2011 – The price of gold bullion has broken away and it appears to be heading straightaway to $1600. A popular but begrudging mainstream projection was that the price would hit that figure only by year’s end. But they were still betting on the greenback.

For a while the Fed got away with its tricks buoyed only by its credit rating, which never budged from AAA/Aaa. Now at last Weiss Ratings has taken the big three sovereign ratings services to task with its far more realistic evaluation of the debt of 47 top economies.

Weiss Ratings, which covers 19,000 U.S. banks, credit unions and insurance companies, was formed to provide unbiased protection to consumers and investors from financial risks and their ratings have “been recognized by the U.S. Government Accountability Office (GAO), the U.S. Senate, the U.S. House of Representatives, and the financial media.”

To fill a “similar void in the realm of sovereign nations, along with an urgent need to unambiguously warn the public of growing risks, Weiss recently introduce the Weiss Sovereign Debt Ratings. The USA ranks 33rd on the Weiss scale with a grade of C; “Even the government finances of the Philippines, Indonesia, Bulgaria, and Mexico are stronger than ours,” says the founder of the service, Martin Weiss. “The C rating signals that the current fiscal condition of the United States government is far inferior to that implied by its AAA/Aaa rating.”

The USA “ranks 44th in terms of its debt burden … 32nd for international stability … and 27th for economic health.” It is only because the USA “ranks 6th for its ability to borrow in the global marketplace” that our final grade was not much lower.

The failure of mainstream sovereign ratings agencies to accurately assess the condition of the US economy has cost us plenty. It allowed the Fed to take us down this very dangerous path and it fostered the political gridlock in Washington. If we had been accurately rated years ago it would have made it far easier to take preemptive remedial steps. And the artificially high rating created a false sense of security and “chronic public complacency.”

A Weiss grade of C means there is still time to turn things around. I have my doubts about that because the status quo is certain to kill the messenger. But the word is out and it comes as no surprise.

The tangled web is unraveling, and the move is on to the shelter of gold bullion investments.

]]>May 02, 2011 – The price of gold bullion has broken away and it appears to be heading straightaway to $1600. A popular but begrudging mainstream projection was that the price would hit that figure only by year’s end. But they were still betting on the greenback.

For a while the Fed got away with its tricks buoyed only by its credit rating, which never budged from AAA/Aaa. Now at last Weiss Ratings has taken the big three sovereign ratings services to task with its far more realistic evaluation of the debt of 47 top economies.

Weiss Ratings, which covers 19,000 U.S. banks, credit unions and insurance companies, was formed to provide unbiased protection to consumers and investors from financial risks and their ratings have “been recognized by the U.S. Government Accountability Office (GAO), the U.S. Senate, the U.S. House of Representatives, and the financial media.”

To fill a “similar void in the realm of sovereign nations, along with an urgent need to unambiguously warn the public of growing risks, Weiss recently introduce the Weiss Sovereign Debt Ratings. The USA ranks 33rd on the Weiss scale with a grade of C; “Even the government finances of the Philippines, Indonesia, Bulgaria, and Mexico are stronger than ours,” says the founder of the service, Martin Weiss. “The C rating signals that the current fiscal condition of the United States government is far inferior to that implied by its AAA/Aaa rating.”

The USA “ranks 44th in terms of its debt burden … 32nd for international stability … and 27th for economic health.” It is only because the USA “ranks 6th for its ability to borrow in the global marketplace” that our final grade was not much lower.

The failure of mainstream sovereign ratings agencies to accurately assess the condition of the US economy has cost us plenty. It allowed the Fed to take us down this very dangerous path and it fostered the political gridlock in Washington. If we had been accurately rated years ago it would have made it far easier to take preemptive remedial steps. And the artificially high rating created a false sense of security and “chronic public complacency.”

A Weiss grade of C means there is still time to turn things around. I have my doubts about that because the status quo is certain to kill the messenger. But the word is out and it comes as no surprise.

The tangled web is unraveling, and the move is on to the shelter of gold bullion investments.

]]>http://www.gold-bullion.org/bullion/shelter-goldbullion-investments/#13043633513567http://www.gold-bullion.org/bullion/goldbullionsores-dollarplummets/
Sun, 01 May 2011 16:51:13 -0700May 1, 2011 – Following the Fed’s report and Bernanke’s press conference the price of gold bullion soared to new highs while the dollar plummeting to new depths – the worst since the summer of 2008. Nice try, Mr. Bernanke, but it seems that nobody is buying your spiel.

Take a look at the global picture of the recovery. Everyone, except us, is tightening their monetary policies. And our growth since the crisis began of only 2.8% annually lags far behind all of the others. Furthermore, what growth we have experienced has been at the expense of our global partners, a temporary advantage we gained from cheap dollars – something the world has been warning us will lead to trade wars.

On one hand Bernanke says “the Federal Reserve believes that a strong and stable dollar is both in American interests and in the interests of the global economy.” “But there is little indication of a change in policy from either the Fed or Treasury—or in underlying economic conditions—that would alter the currency's downward course,” says the Wall Street Journal.

The few signs we have of any significant recovery only reflect the inflationary pressure of the Fed policy – strong exports and climbing stock prices – and not improvement in the fundamental structure of the economy. That is why even third world currencies are realizing unprecedented growth against the once-almighty dollar.

Bernanke’s words are usually so diametrically opposed to his actions that when something pops out that isn’t so, you can’t help but notice. That was the case when he stated that the deficit was the single most important issue the country faces today. A no-brainer, to be sure, but perfectly aligned with his policies.

The Fed policy is not about growth. It’s not even about kick starting the economy. It is aimed, pure and simple, at inflating our way out of debt. Bernanke is absolutely correct that the economy has no chance of recovery under the current debt load. But taking the con man’s way out can send the dollar only lower.

If the Fed keeps it up the dollar will become virtually worthless sooner than you may care to think. And Bernanke let us know that he has no intention of changing policy for at least three months.

A “strong and stable dollar” cannot exist under current policy. That makes a strong position in gold bullion an absolute necessity.

]]>May 1, 2011 – Following the Fed’s report and Bernanke’s press conference the price of gold bullion soared to new highs while the dollar plummeting to new depths – the worst since the summer of 2008. Nice try, Mr. Bernanke, but it seems that nobody is buying your spiel.

Take a look at the global picture of the recovery. Everyone, except us, is tightening their monetary policies. And our growth since the crisis began of only 2.8% annually lags far behind all of the others. Furthermore, what growth we have experienced has been at the expense of our global partners, a temporary advantage we gained from cheap dollars – something the world has been warning us will lead to trade wars.

On one hand Bernanke says “the Federal Reserve believes that a strong and stable dollar is both in American interests and in the interests of the global economy.” “But there is little indication of a change in policy from either the Fed or Treasury—or in underlying economic conditions—that would alter the currency's downward course,” says the Wall Street Journal.

The few signs we have of any significant recovery only reflect the inflationary pressure of the Fed policy – strong exports and climbing stock prices – and not improvement in the fundamental structure of the economy. That is why even third world currencies are realizing unprecedented growth against the once-almighty dollar.

Bernanke’s words are usually so diametrically opposed to his actions that when something pops out that isn’t so, you can’t help but notice. That was the case when he stated that the deficit was the single most important issue the country faces today. A no-brainer, to be sure, but perfectly aligned with his policies.

The Fed policy is not about growth. It’s not even about kick starting the economy. It is aimed, pure and simple, at inflating our way out of debt. Bernanke is absolutely correct that the economy has no chance of recovery under the current debt load. But taking the con man’s way out can send the dollar only lower.

If the Fed keeps it up the dollar will become virtually worthless sooner than you may care to think. And Bernanke let us know that he has no intention of changing policy for at least three months.

A “strong and stable dollar” cannot exist under current policy. That makes a strong position in gold bullion an absolute necessity.

]]>http://www.gold-bullion.org/bullion/goldbullionsores-dollarplummets/#13042938733563http://www.gold-bullion.org/bullion/goldbullion-the-starndard/
Wed, 27 Apr 2011 13:57:38 -0700April 27, 2011 – You don’t have to wait for Bernanke’s much touted first-ever press conference Wednesday to have ample reason to invest in gold bullion. Chances are we’ll just get more side- stepping semantics anyway, while the Fed bumbles along with its head where the sun don’t shine. After all, this is America, where politics trumps common sense and nothing serious will be done about the deficit before the next election.

But forget 2012. Think four more years down the road and it won’t matter who is running the show stateside because that is when the IMF predicts that China will ascend to top economic dog. That’s right, in five short years the Chinese will have succeeded in deposing the once great American economy in real terms of purchasing power parity (PPP).

PPP, which is a normalized measure of what people really earn and spend in an economy and cannot be manipulated as GDPs can be and it is not subject to the volatility of exchange rates. PPP is a very common and well accepted tool, so how did we get blindsided? Plain old arrogance.

The alarm first sounded forty years ago, when China made its first public moves to enter the global economic community. We were too caught up in the cold war to worry much about it, so our only reaction was a series of protectionist measures. When the Soviet Union fell we celebrated the victory of capitalism over communism, but China was taking the best from both systems.

Communism may not be humane, but properly applied it can be extremely efficient in such a huge emerging economy. For decades it was no secret that China was experiencing unprecedented growth but we refused to believe that they could overtake us. But only a decade ago their economy was just one third the size of ours, and today it is nearly three quarters. We’re on the final lap and we’ve run out of gas.

When China takes over we’ll face a much bigger problem than learning to play second fiddle. It will be a real game changer. China’s goal is global domination, pure and simple. We will all have to play by their rules and most markets are in for very dark times as they try to adapt.

The market for gold bullion, however, will still set the standard, just as it always has.

]]>April 27, 2011 – You don’t have to wait for Bernanke’s much touted first-ever press conference Wednesday to have ample reason to invest in gold bullion. Chances are we’ll just get more side- stepping semantics anyway, while the Fed bumbles along with its head where the sun don’t shine. After all, this is America, where politics trumps common sense and nothing serious will be done about the deficit before the next election.

But forget 2012. Think four more years down the road and it won’t matter who is running the show stateside because that is when the IMF predicts that China will ascend to top economic dog. That’s right, in five short years the Chinese will have succeeded in deposing the once great American economy in real terms of purchasing power parity (PPP).

PPP, which is a normalized measure of what people really earn and spend in an economy and cannot be manipulated as GDPs can be and it is not subject to the volatility of exchange rates. PPP is a very common and well accepted tool, so how did we get blindsided? Plain old arrogance.

The alarm first sounded forty years ago, when China made its first public moves to enter the global economic community. We were too caught up in the cold war to worry much about it, so our only reaction was a series of protectionist measures. When the Soviet Union fell we celebrated the victory of capitalism over communism, but China was taking the best from both systems.

Communism may not be humane, but properly applied it can be extremely efficient in such a huge emerging economy. For decades it was no secret that China was experiencing unprecedented growth but we refused to believe that they could overtake us. But only a decade ago their economy was just one third the size of ours, and today it is nearly three quarters. We’re on the final lap and we’ve run out of gas.

When China takes over we’ll face a much bigger problem than learning to play second fiddle. It will be a real game changer. China’s goal is global domination, pure and simple. We will all have to play by their rules and most markets are in for very dark times as they try to adapt.

The market for gold bullion, however, will still set the standard, just as it always has.

]]>http://www.gold-bullion.org/bullion/goldbullion-the-starndard/#13039378583559http://www.gold-bullion.org/bullion/goldbullion-investments/
Mon, 25 Apr 2011 11:08:09 -0700April 25, 2011 – What will it take to get gold bullion really moving? We got a pretty good clue this week. Breaking the $1500 mark was nice, but the impressive thing was it did so on anemic trading. To truly break away “we need more persistent safe-haven buying or fresh inflation- hedge inflows” according to a VTB Capital note to clients reported in yesterday’s Wall Street Journal.

The S&P report was hardly a surprise and was long overdue, but it served as a wakeup call to global investors. Gloomy unemployment figures and a discouraging Philadelphia Fed Index on manufacturing underscored the ineffectiveness of QE2, and the dollar got pummeled.

“Further missteps [are] sure to send the dollar spiraling,” said Andrew Busch, global foreign- exchange strategist at BMO Capital Markets in Chicago in the Wall Street Journal. With the mop-up of hundreds of billions of dollars of excess equity looming, we can count on missteps. “It's going to be a little bit of groping around in the dark because we are in unprecedented territory,” Busch said. “Inflation is a tricky animal for the Fed.”

The economy seems to be a tricky animal for the Fed. While central banks around the world are raising rates to ward off Bernanke’s inflation, the Fed stands alone doing just the opposite. There is but one reason to persist as if everything were OK – the Fed knows it can’t possibly get us out of debt.

Officially the federal debt is stated to be 70% of GDP, no cause for concern. But “when you look at gross U.S. federal debts, they are now about $15 trillion,” said Brett Arends in MarketWatch – that’s more like 100% of the GDP, “right up in the danger zone.” Perhaps even that could be dealt with (just not with the current crew), but the non-federal portion of the total non-financial sector debt is roughly the same, and the fed can do nothing about it. Still it is there, and it cannot be separated out when computing the total national debt.

It is highly unlikely that the dollar will experience any long-term recovery on the global market. Sentiment against the greenback is growing by leaps and bounds and investors are realizing that its reputation as a safe haven is no longer warranted.

We can expect gold to break away when big investors start converting their dollars to gold bullion.

]]>April 25, 2011 – What will it take to get gold bullion really moving? We got a pretty good clue this week. Breaking the $1500 mark was nice, but the impressive thing was it did so on anemic trading. To truly break away “we need more persistent safe-haven buying or fresh inflation- hedge inflows” according to a VTB Capital note to clients reported in yesterday’s Wall Street Journal.

The S&P report was hardly a surprise and was long overdue, but it served as a wakeup call to global investors. Gloomy unemployment figures and a discouraging Philadelphia Fed Index on manufacturing underscored the ineffectiveness of QE2, and the dollar got pummeled.

“Further missteps [are] sure to send the dollar spiraling,” said Andrew Busch, global foreign- exchange strategist at BMO Capital Markets in Chicago in the Wall Street Journal. With the mop-up of hundreds of billions of dollars of excess equity looming, we can count on missteps. “It's going to be a little bit of groping around in the dark because we are in unprecedented territory,” Busch said. “Inflation is a tricky animal for the Fed.”

The economy seems to be a tricky animal for the Fed. While central banks around the world are raising rates to ward off Bernanke’s inflation, the Fed stands alone doing just the opposite. There is but one reason to persist as if everything were OK – the Fed knows it can’t possibly get us out of debt.

Officially the federal debt is stated to be 70% of GDP, no cause for concern. But “when you look at gross U.S. federal debts, they are now about $15 trillion,” said Brett Arends in MarketWatch – that’s more like 100% of the GDP, “right up in the danger zone.” Perhaps even that could be dealt with (just not with the current crew), but the non-federal portion of the total non-financial sector debt is roughly the same, and the fed can do nothing about it. Still it is there, and it cannot be separated out when computing the total national debt.

It is highly unlikely that the dollar will experience any long-term recovery on the global market. Sentiment against the greenback is growing by leaps and bounds and investors are realizing that its reputation as a safe haven is no longer warranted.

We can expect gold to break away when big investors start converting their dollars to gold bullion.

]]>http://www.gold-bullion.org/bullion/goldbullion-investments/#13037548893555http://www.gold-bullion.org/bullion/gold-bullion-shelter/
Thu, 21 Apr 2011 13:18:12 -0700April 21, 2011 – The powers behind the status quo are hard at work trying to convince us not to shelter our wealth in gold bullion. The simple truth is they need our cash to keep their sinking ship afloat as long as possible so they can wring every last dime out of the economy before it finally crumbles into dust.

So far they have done quite well dismissing the S & P downgrade of our economic outlook, but that is exactly the sort of arrogance that makes a downgrade of our credit rating inevitable. Changing a sovereign’s outlook from stable to negative is the weakest statement the rating service could make and even at that it was wrapped up in the flag.

But with our currency being the world’s reserve “the fact that U.S. debt obligations could be put on negative watch is a disquieting, game-changing thought for a lot of the world … and now these people have turned to [gold]," said George Gero, vice president with RBC Capital Markets Global Futures to the Wall Street Journal. Japan has stepped forward with professed faith in the dollar, but that is only a thinly disguised attempt to protect the assets of the world’s second largest holder of US debt.

Agora Financial’s Editorial Director Eric J. Fry underscores the weakness of the dollar: “Would you believe that the top- performing currency of 2011 is the Paraguayan Guarani? And that's not all; the next best performing currencies are the Mauritian Rupee, Hungarian Florint, Czech Koruna, Russian Ruble and Colombian Peso … each of them has also appreciated at least 25% against the US dollar during the last two years.”

Meanwhile China is accelerating its program to globalize the yuan while stockpiling vast quantities of gold to shore up its reserves.

As reported in MSN Money, Standard Chartered Bank established a team to project gold’s future. The dollar’s decline along with “a number of structural factors - including consumer demand from Asia and tepid growth in supply” are combining to drive up the price of gold bullion, moving it into a new ‘super-cycle.’ Standard’s base forecast puts the price at $2,107 an ounce in the next three years, but “statistical modeling suggests a possible 'super-bull' scenario of gold prices rallying up to $4,869 in nominal terms by 2020.”

Physically held gold bullion not only puts real spendable money within easy reach for the worst case scenario, it is also one of the strongest investments you can make should it all play out in the best possible way.

]]>April 21, 2011 – The powers behind the status quo are hard at work trying to convince us not to shelter our wealth in gold bullion. The simple truth is they need our cash to keep their sinking ship afloat as long as possible so they can wring every last dime out of the economy before it finally crumbles into dust.

So far they have done quite well dismissing the S & P downgrade of our economic outlook, but that is exactly the sort of arrogance that makes a downgrade of our credit rating inevitable. Changing a sovereign’s outlook from stable to negative is the weakest statement the rating service could make and even at that it was wrapped up in the flag.

But with our currency being the world’s reserve “the fact that U.S. debt obligations could be put on negative watch is a disquieting, game-changing thought for a lot of the world … and now these people have turned to [gold]," said George Gero, vice president with RBC Capital Markets Global Futures to the Wall Street Journal. Japan has stepped forward with professed faith in the dollar, but that is only a thinly disguised attempt to protect the assets of the world’s second largest holder of US debt.

Agora Financial’s Editorial Director Eric J. Fry underscores the weakness of the dollar: “Would you believe that the top- performing currency of 2011 is the Paraguayan Guarani? And that's not all; the next best performing currencies are the Mauritian Rupee, Hungarian Florint, Czech Koruna, Russian Ruble and Colombian Peso … each of them has also appreciated at least 25% against the US dollar during the last two years.”

Meanwhile China is accelerating its program to globalize the yuan while stockpiling vast quantities of gold to shore up its reserves.

As reported in MSN Money, Standard Chartered Bank established a team to project gold’s future. The dollar’s decline along with “a number of structural factors - including consumer demand from Asia and tepid growth in supply” are combining to drive up the price of gold bullion, moving it into a new ‘super-cycle.’ Standard’s base forecast puts the price at $2,107 an ounce in the next three years, but “statistical modeling suggests a possible 'super-bull' scenario of gold prices rallying up to $4,869 in nominal terms by 2020.”

Physically held gold bullion not only puts real spendable money within easy reach for the worst case scenario, it is also one of the strongest investments you can make should it all play out in the best possible way.

]]>http://www.gold-bullion.org/bullion/gold-bullion-shelter/#13034170923551http://www.gold-bullion.org/bullion/gold-bullion-prices/
Mon, 18 Apr 2011 10:34:23 -0700April 18, 2011 – Once again gold bullion is on the march, closing in on what many consider to be its breakaway point. I don’t put much stock in such figures, but Wall Street loves them. Regardless of the price point, it’s a pretty sure bet that gold will break away very soon as the hopelessness of fixing the deficit becomes apparent. Today we took one step closerGold bullion’s breakaway might be closer than you think. to that as S & P lowered its outlook for our economic condition to negative.

Even Paul Ryan’s Republican program-slashing alternative spending plan won’t produce a balanced budget within the next quarter century, and neither Ryan nor Obama has dared to project a balanced budget in their 10-year plans. A survey by Rasmussen Reports found “nearly two-out-of-three voters (64%) think they are unlikely to see a balanced budget in their lives,” and the number is even higher for workers under 30 years old despite their longer lifetimes.

Still, while nearly three quarters of those surveyed said a balanced budget is good for the economy, other results reveal a disturbing lack of understanding of what it would take to get there.

More than half of the respondents believe the budget can be balanced without raising taxes and only one in five said they are willing to pay higher taxes to cut the deficit. More than a third believe it is unnecessary to make any major changes in defense, Social Security, and Medicare – about the same number as those who don’t understand that those three things account for the majority of federal spending.

Most Americans don’t expect either party to come up with a serious plan to deal with the deficit. In 2008 we elected a President on the promise of change then two years later we voted in the Tea Party because we didn’t get what we were promised. But still nothing has changed. We’ve seen the Wall Street fat cats who got us into this mess blatantly line their pockets while our cost of living soars. Every day brings another insult to the working class, leaving them feeling worn out and powerless – and they just don’t want to hear any more bad news.

Sadly, many are going to suffer for it. No less than the collapse of social order is brewing, which is perhaps the strongest reason of all to buy gold bullion.

]]>April 18, 2011 – Once again gold bullion is on the march, closing in on what many consider to be its breakaway point. I don’t put much stock in such figures, but Wall Street loves them. Regardless of the price point, it’s a pretty sure bet that gold will break away very soon as the hopelessness of fixing the deficit becomes apparent. Today we took one step closerGold bullion’s breakaway might be closer than you think. to that as S & P lowered its outlook for our economic condition to negative.

Even Paul Ryan’s Republican program-slashing alternative spending plan won’t produce a balanced budget within the next quarter century, and neither Ryan nor Obama has dared to project a balanced budget in their 10-year plans. A survey by Rasmussen Reports found “nearly two-out-of-three voters (64%) think they are unlikely to see a balanced budget in their lives,” and the number is even higher for workers under 30 years old despite their longer lifetimes.

Still, while nearly three quarters of those surveyed said a balanced budget is good for the economy, other results reveal a disturbing lack of understanding of what it would take to get there.

More than half of the respondents believe the budget can be balanced without raising taxes and only one in five said they are willing to pay higher taxes to cut the deficit. More than a third believe it is unnecessary to make any major changes in defense, Social Security, and Medicare – about the same number as those who don’t understand that those three things account for the majority of federal spending.

Most Americans don’t expect either party to come up with a serious plan to deal with the deficit. In 2008 we elected a President on the promise of change then two years later we voted in the Tea Party because we didn’t get what we were promised. But still nothing has changed. We’ve seen the Wall Street fat cats who got us into this mess blatantly line their pockets while our cost of living soars. Every day brings another insult to the working class, leaving them feeling worn out and powerless – and they just don’t want to hear any more bad news.

Sadly, many are going to suffer for it. No less than the collapse of social order is brewing, which is perhaps the strongest reason of all to buy gold bullion.

]]>http://www.gold-bullion.org/bullion/gold-bullion-prices/#13031480633547http://www.gold-bullion.org/bullion/goldbullioninvestments/
Fri, 15 Apr 2011 12:44:04 -0700April 15, 2011 – Gold bullion investments are the average Joe’s best defense against the dollar-trashing, market-crashing grabfest for the filthy rich. We didn’t get invited to Bernanke’s party where outrageous deals were handed out as favors behind the backs of Congress and the President.

You and some friends create a venture and drum up $15 million in startup capital. None of you has any real business experience, but the Fed hands you $220 million in low interest loans anyway to buy commercial mortgages and student loans. Now, if your subsidized investment makes a profit, you get to keep it all. But if it tanks, you split the losses with the taxpayers 10-90.

Who could get a deal like that? The wife of the chairman of Morgan Stanley and her pal, the widow of a president of the company’s investment banking division. That’s the same Morgan Stanley that got $2 trillion in bailout loans.

The program, called TALF, was created in November 2008 purportedly to fuel consumer lending. The Fed got control of trillions of dollars, and, rather than lending it directly to consumers, thought it better to help out its Wall Street buddies and handed it over to the same crooks who caused the whole mess in the first place. Bernanke’s cronies had been through so much, so he sweetened the deal with so-called ‘non-recourse’ loans.

It works like this. Some hedge fund buys a pile of junk with a bunch of cash it borrowed from the Fed, which the Fed then holds as collateral. If the junk makes money the fund cashes in, pays off the loan, and pockets the difference. But if the investment tanks, the hedge fund just walks away free and clear, while taxpayers eat the loss.

Congress has finally forced the Fed into at least partial public disclosure of these shady bailout dealings and there is a lot more to the story. We have known all along that the Fed was in bed with the Wall Street elite, this is only the proof that Bernanke & Co. has fought so hard to keep secret. The best we can do is strongly invest in gold bullion and wait for their comeuppance.

]]>April 15, 2011 – Gold bullion investments are the average Joe’s best defense against the dollar-trashing, market-crashing grabfest for the filthy rich. We didn’t get invited to Bernanke’s party where outrageous deals were handed out as favors behind the backs of Congress and the President.

You and some friends create a venture and drum up $15 million in startup capital. None of you has any real business experience, but the Fed hands you $220 million in low interest loans anyway to buy commercial mortgages and student loans. Now, if your subsidized investment makes a profit, you get to keep it all. But if it tanks, you split the losses with the taxpayers 10-90.

Who could get a deal like that? The wife of the chairman of Morgan Stanley and her pal, the widow of a president of the company’s investment banking division. That’s the same Morgan Stanley that got $2 trillion in bailout loans.

The program, called TALF, was created in November 2008 purportedly to fuel consumer lending. The Fed got control of trillions of dollars, and, rather than lending it directly to consumers, thought it better to help out its Wall Street buddies and handed it over to the same crooks who caused the whole mess in the first place. Bernanke’s cronies had been through so much, so he sweetened the deal with so-called ‘non-recourse’ loans.

It works like this. Some hedge fund buys a pile of junk with a bunch of cash it borrowed from the Fed, which the Fed then holds as collateral. If the junk makes money the fund cashes in, pays off the loan, and pockets the difference. But if the investment tanks, the hedge fund just walks away free and clear, while taxpayers eat the loss.

Congress has finally forced the Fed into at least partial public disclosure of these shady bailout dealings and there is a lot more to the story. We have known all along that the Fed was in bed with the Wall Street elite, this is only the proof that Bernanke & Co. has fought so hard to keep secret. The best we can do is strongly invest in gold bullion and wait for their comeuppance.

]]>http://www.gold-bullion.org/bullion/goldbullioninvestments/#13028966443543http://www.gold-bullion.org/bullion/timetoinvestingoldbullion/
Wed, 13 Apr 2011 14:29:22 -0700April 13, 2011 – Americans are quickly running out of time to protect their families with gold bullion investments. But there is stubborn resistance to accepting how dire the situation really is, a natural instinct called “normalcy bias” that preprograms us not to believe disaster is imminent just because such a thing has never happened before.

The government has been playing on that with an unrelenting program of misinformation, but thankfully a few are willing to tell it like it is. Consider some of what Erskine Bowles (co-chair of President Barack Obama’s National Commission on Fiscal Responsibility) said in testimony to the Senate Budget Committee last week:

“We face the most predictable economic crisis in history.” And “this debt and these deficits that we are incurring on an annual basis are like a cancer and they are truly going to destroy this country from within.” How about “It may be two years, you know, maybe a little less, maybe a little more. But … the markets will absolutely devastate us.”

The world has awakened to that fact and the movement to detach global trade from the dollar is well under way.

Porter Stansberry, the founder and the managing director of Stansberry & Associates, a Baltimore–based financial research firm, says that when the dollar loses its status “as the world's 'reserve currency,' it will cause a brutal downturn in the economy, which I expect will be about 10-times worse than the mortgage crisis of 2008.”

Jim Rogers, a highly regarded global investor says “the dollar is not just in decline; it's a mess … [leading] to a huge decline in the standard of living for U.S. citizens like nothing we've seen in nearly a century.”

Brazilian economist Ricardo C. Amaral adds that we are going to see “the major collapse of the US dollar creating the biggest international monetary crisis the world has ever seen.”

It is not only possible for the dollar to fall out of favor, it is inevitable. “The United States would be mistaken to take for granted the dollar's place as the world's predominant reserve currency … there will increasingly be other options,” said World Bank president, Robert B. Zoellick.

Wake up America. The dollar is history. Those who don’t take shelter in gold bullion investments will surely go down with it.

]]>April 13, 2011 – Americans are quickly running out of time to protect their families with gold bullion investments. But there is stubborn resistance to accepting how dire the situation really is, a natural instinct called “normalcy bias” that preprograms us not to believe disaster is imminent just because such a thing has never happened before.

The government has been playing on that with an unrelenting program of misinformation, but thankfully a few are willing to tell it like it is. Consider some of what Erskine Bowles (co-chair of President Barack Obama’s National Commission on Fiscal Responsibility) said in testimony to the Senate Budget Committee last week:

“We face the most predictable economic crisis in history.” And “this debt and these deficits that we are incurring on an annual basis are like a cancer and they are truly going to destroy this country from within.” How about “It may be two years, you know, maybe a little less, maybe a little more. But … the markets will absolutely devastate us.”

The world has awakened to that fact and the movement to detach global trade from the dollar is well under way.

Porter Stansberry, the founder and the managing director of Stansberry & Associates, a Baltimore–based financial research firm, says that when the dollar loses its status “as the world's 'reserve currency,' it will cause a brutal downturn in the economy, which I expect will be about 10-times worse than the mortgage crisis of 2008.”

Jim Rogers, a highly regarded global investor says “the dollar is not just in decline; it's a mess … [leading] to a huge decline in the standard of living for U.S. citizens like nothing we've seen in nearly a century.”

Brazilian economist Ricardo C. Amaral adds that we are going to see “the major collapse of the US dollar creating the biggest international monetary crisis the world has ever seen.”

It is not only possible for the dollar to fall out of favor, it is inevitable. “The United States would be mistaken to take for granted the dollar's place as the world's predominant reserve currency … there will increasingly be other options,” said World Bank president, Robert B. Zoellick.

Wake up America. The dollar is history. Those who don’t take shelter in gold bullion investments will surely go down with it.

]]>http://www.gold-bullion.org/bullion/timetoinvestingoldbullion/#13027301623539http://www.gold-bullion.org/bullion/paperassets-goldbullion/
Mon, 11 Apr 2011 14:02:48 -0700April 11, 2011 – The sorry shape of paper asset should be enough to drive any investor to gold bullion. The financial crisis deeply distressed a great many companies, whetting the appetite of Wall Street vultures who swoop in to feed off the carcasses. The scheme is straightforward: buy up debt of struggling companies at bargain rates and when the companies fail that debt is converted into more valuable equity.

But now, thanks to the flood of money pumped into the markets, insiders are looking for anything that will give them good returns. Welcome back junk bonds, and they are thwarting the vultures’ plans. More and more companies are averting bankruptcy by paying off obligations with high yield bonds. The Wall Street Journal offers one example, Lee Enterprises Inc., a large newspaper chain.

Lee was some $1 billion in the hole and “has long been high on the list of potential bankruptcies.” The vultures moved in and picked up Lee’s obligations, certain the company would default and they “could turn their holdings into an ownership stake, giving them access to the company's assets, which include St. Louis Post Dispatch and the Arizona Daily Star newspapers.” A manager at Alden Global, a distressed portfolio manager, “was so frustrated that he called Lee's bankers at Credit Suisse AG last month to berate them for sabotaging his plans.”

While it is amusing to watch such Wall Street infighting, there is an ominous warning between the lines. All that liquidity that Bernanke has channeled onto Wall Street is getting tied up in ever riskier paper. “Lee's debt is about six times its earnings before interest, taxes, depreciation and amortization,” and the Fed’s indirect bailout is not a good thing.

The natural order of things is to let companies die. The vultures pick the bones, either selling off the assets or taking over the company. Natural selection assures the survivors are those most fit, but the Fed has turned that upside down.

The short term reversal in the fortunes of distressed companies is not economic recovery. Quite the opposite – it is a recipe for future disaster. In the end the natural order must be restored, and only gold bullion investments will be left standing strong.

]]>April 11, 2011 – The sorry shape of paper asset should be enough to drive any investor to gold bullion. The financial crisis deeply distressed a great many companies, whetting the appetite of Wall Street vultures who swoop in to feed off the carcasses. The scheme is straightforward: buy up debt of struggling companies at bargain rates and when the companies fail that debt is converted into more valuable equity.

But now, thanks to the flood of money pumped into the markets, insiders are looking for anything that will give them good returns. Welcome back junk bonds, and they are thwarting the vultures’ plans. More and more companies are averting bankruptcy by paying off obligations with high yield bonds. The Wall Street Journal offers one example, Lee Enterprises Inc., a large newspaper chain.

Lee was some $1 billion in the hole and “has long been high on the list of potential bankruptcies.” The vultures moved in and picked up Lee’s obligations, certain the company would default and they “could turn their holdings into an ownership stake, giving them access to the company's assets, which include St. Louis Post Dispatch and the Arizona Daily Star newspapers.” A manager at Alden Global, a distressed portfolio manager, “was so frustrated that he called Lee's bankers at Credit Suisse AG last month to berate them for sabotaging his plans.”

While it is amusing to watch such Wall Street infighting, there is an ominous warning between the lines. All that liquidity that Bernanke has channeled onto Wall Street is getting tied up in ever riskier paper. “Lee's debt is about six times its earnings before interest, taxes, depreciation and amortization,” and the Fed’s indirect bailout is not a good thing.

The natural order of things is to let companies die. The vultures pick the bones, either selling off the assets or taking over the company. Natural selection assures the survivors are those most fit, but the Fed has turned that upside down.

The short term reversal in the fortunes of distressed companies is not economic recovery. Quite the opposite – it is a recipe for future disaster. In the end the natural order must be restored, and only gold bullion investments will be left standing strong.

]]>http://www.gold-bullion.org/bullion/paperassets-goldbullion/#13025557683535http://www.gold-bullion.org/bullion/gold-bullion-monetization/
Fri, 08 Apr 2011 11:31:29 -0700April 08, 2011 – Is it just coincidence that the price of gold bullion has risen in lockstep with the expansion of liquidity created by monetization? Or the price of oil for that matter? So goes Bernanke’s fairy tale, and the growth in the stock market and even currencies is what he offers as proof.

But there is only one way for everything to keep going up – the illusion of growth created by the rapid withering of the dollar. And the only way to keep the illusion alive is to continue pumping more money into the system. That’s like putting nitro fuel in funny cars – it gives you short-term boost but can blow the engine to smithereens at any moment.

The problem is that monetization has failed miserably in its prime objectives – to grow equities through greater investor participation. Instead it has made investors even more leery and deprived them of the disposable income they need to invest. The only growth the stock market has seen is through inflated prices, not the hoped for infusion of new equity.

In the 1990s there were an average of 503 initial public offerings (IPO) but over the last decade that dropped to just 130 says research firm Dealogic in the Wall Street Journal. What Wall Street needs, obviously, is another of our governments gimmicky quick fixes that worked so well in the past. Enter the SEC.

New rules have been proposed for the entry of private equity into the market that would strip away retail investor safeguards that have been in place for decades. The whole idea behind the IPO process was to require full disclosure of a company’s operations to put individual investors on equal footing with insiders and to give individuals equal opportunity to participate in the offering.

Under the new rules, however, “at a time when investors are seeking more market transparency, it would lessen the amount of publicly available data about those companies,” says the Wall Street Journal, while shutting out “ordinary investors from one of the fastest-growing market sectors.”

Wall Street knows it desperately needs new blood more than it needs new money, but that won’t happen as more individuals every day are getting wise to the game and investing in real money – gold bullion.

]]>April 08, 2011 – Is it just coincidence that the price of gold bullion has risen in lockstep with the expansion of liquidity created by monetization? Or the price of oil for that matter? So goes Bernanke’s fairy tale, and the growth in the stock market and even currencies is what he offers as proof.

But there is only one way for everything to keep going up – the illusion of growth created by the rapid withering of the dollar. And the only way to keep the illusion alive is to continue pumping more money into the system. That’s like putting nitro fuel in funny cars – it gives you short-term boost but can blow the engine to smithereens at any moment.

The problem is that monetization has failed miserably in its prime objectives – to grow equities through greater investor participation. Instead it has made investors even more leery and deprived them of the disposable income they need to invest. The only growth the stock market has seen is through inflated prices, not the hoped for infusion of new equity.

In the 1990s there were an average of 503 initial public offerings (IPO) but over the last decade that dropped to just 130 says research firm Dealogic in the Wall Street Journal. What Wall Street needs, obviously, is another of our governments gimmicky quick fixes that worked so well in the past. Enter the SEC.

New rules have been proposed for the entry of private equity into the market that would strip away retail investor safeguards that have been in place for decades. The whole idea behind the IPO process was to require full disclosure of a company’s operations to put individual investors on equal footing with insiders and to give individuals equal opportunity to participate in the offering.

Under the new rules, however, “at a time when investors are seeking more market transparency, it would lessen the amount of publicly available data about those companies,” says the Wall Street Journal, while shutting out “ordinary investors from one of the fastest-growing market sectors.”

Wall Street knows it desperately needs new blood more than it needs new money, but that won’t happen as more individuals every day are getting wise to the game and investing in real money – gold bullion.

]]>http://www.gold-bullion.org/bullion/gold-bullion-monetization/#13022874893531http://www.gold-bullion.org/bullion/Investmentasset-goldbullion/
Wed, 06 Apr 2011 13:05:24 -0700April 06, 2011 – It takes only about 21% the amount of gold bullion to purchase the Dow today than it did just 10 years ago. That should tell you something.

When it takes less and less gold to buy equities it is a sure sign that the stock market has stopped playing by the rules. Rather than improving fundamentals and increased demand, gains are coming from excess liquidity, an artificial and unsustainable force. It is “the end of an era for equities” and gold is certain to be “the next great asset class,” says Fred's Intelligent Bear Site.

Actually, the trend is just part of a very consistent cycle that leveled out at the turn of the century. Under normal circumstances we would expect the slide to bottom out at five or six ounces of gold to buy the Dow. But circumstances are far from normal and a repeat of the last down side, where the ratio dropped to 1, is very likely. And the final plunge will be sudden if hyperinflation strikes.

The National Inflation Association (NIA) has been trying to warn us of the eventuality of hyperinflation for years, but the warnings have fallen on deaf ears. It’s just natural for Americans to believe such a thing cannot happen here. In the past we could justify that belief because the dollar dominated global trade. It earned its position as reserve currency because the USA had by far the largest manufacturing and consumer bases, and the dollar was backed by gold. Things have changed.

Now China has the largest manufacturing base and global consumption has lessened the significance of our own. China is also actively taking measures to position the yuan as the new global reserve and to convert their dollar assets to gold to further bolster their currency.

As the Fed repatriates more and more of our sovereign debt the inevitable inflationary pressures of monetization will quickly lead to hyperinflation. The NIA believes “the most likely time frame for a full-fledged outbreak of hyperinflation is between the years 2013 and 2015.” They also warn that “it is essential that all Americans begin preparing for hyperinflation immediately” because those “who wait until 2013 … will most likely see the majority of their purchasing power wiped out.”

We should heed their advice and start preparing today with gold bullion investments.

]]>April 06, 2011 – It takes only about 21% the amount of gold bullion to purchase the Dow today than it did just 10 years ago. That should tell you something.

When it takes less and less gold to buy equities it is a sure sign that the stock market has stopped playing by the rules. Rather than improving fundamentals and increased demand, gains are coming from excess liquidity, an artificial and unsustainable force. It is “the end of an era for equities” and gold is certain to be “the next great asset class,” says Fred's Intelligent Bear Site.

Actually, the trend is just part of a very consistent cycle that leveled out at the turn of the century. Under normal circumstances we would expect the slide to bottom out at five or six ounces of gold to buy the Dow. But circumstances are far from normal and a repeat of the last down side, where the ratio dropped to 1, is very likely. And the final plunge will be sudden if hyperinflation strikes.

The National Inflation Association (NIA) has been trying to warn us of the eventuality of hyperinflation for years, but the warnings have fallen on deaf ears. It’s just natural for Americans to believe such a thing cannot happen here. In the past we could justify that belief because the dollar dominated global trade. It earned its position as reserve currency because the USA had by far the largest manufacturing and consumer bases, and the dollar was backed by gold. Things have changed.

Now China has the largest manufacturing base and global consumption has lessened the significance of our own. China is also actively taking measures to position the yuan as the new global reserve and to convert their dollar assets to gold to further bolster their currency.

As the Fed repatriates more and more of our sovereign debt the inevitable inflationary pressures of monetization will quickly lead to hyperinflation. The NIA believes “the most likely time frame for a full-fledged outbreak of hyperinflation is between the years 2013 and 2015.” They also warn that “it is essential that all Americans begin preparing for hyperinflation immediately” because those “who wait until 2013 … will most likely see the majority of their purchasing power wiped out.”

We should heed their advice and start preparing today with gold bullion investments.

All along the Fed has said that it wants Americans to stop saving and start gambling on equities. Somehow it thinks removing every trace of fiscal responsibility is just as good an idea for the citizens as it is for itself.

"Americans who have done everything right, have worked hard, saved their money and stayed out of debt are the ones being punished by low interest rates," Richard Fisher, a voting member of the Fed's open market committee told the Wall Street Journal.

Meanwhile earnings are up for the S & P 500 some 12% last quarter over the year before, boosting returns and making equities even more enticing. But those gains were possible only because high unemployment lets employers squeeze more from their workers. Real wages are falling at an alarming rate the will rapidly eclipse their decade long decline of 5%.

Money has to be going somewhere. It certainly isn’t buying new houses — last month saw the fewest sales of new home in nearly a half century of keeping those records. Even the profits of corporations that actually produce something can’t account for it all. On the other hand, “for every dollar of corporate profit made in the United States of America in 2011, nearly 30% comes from shuffling money,” says Bill Bonner in the Daily Reckoning.

That has to backfire. Even if Americans bought into Wall Street’s scheme, it is doubtful that they have been left with sufficient disposable income to keep it running much longer.

Don’t expect things will improve when QE2 gets mothballed in June. Before you can say QE3 the Fed will be doing whatever it takes to keep Wall Street rolling, and printing money is all Bernanke has left in his toolbox. There is no reason to expect Bernanke won’t be tossing another few trillion into the overfilled pool on top of the half trillion Japan just threw in.

Something has to give. When it does everything will come crashing down. Except, of course, for portfolios shored up with gold bullion investments.

]]>April 04, 2011 – The return on gold bullion investments outpaces inflation. Cash investments are now losing more than 5% annually. Equities are up, but at the cost of depressed wages — and that threatens to come crashing down. Therefore buy gold bullion. QED.

All along the Fed has said that it wants Americans to stop saving and start gambling on equities. Somehow it thinks removing every trace of fiscal responsibility is just as good an idea for the citizens as it is for itself.

"Americans who have done everything right, have worked hard, saved their money and stayed out of debt are the ones being punished by low interest rates," Richard Fisher, a voting member of the Fed's open market committee told the Wall Street Journal.

Meanwhile earnings are up for the S & P 500 some 12% last quarter over the year before, boosting returns and making equities even more enticing. But those gains were possible only because high unemployment lets employers squeeze more from their workers. Real wages are falling at an alarming rate the will rapidly eclipse their decade long decline of 5%.

Money has to be going somewhere. It certainly isn’t buying new houses — last month saw the fewest sales of new home in nearly a half century of keeping those records. Even the profits of corporations that actually produce something can’t account for it all. On the other hand, “for every dollar of corporate profit made in the United States of America in 2011, nearly 30% comes from shuffling money,” says Bill Bonner in the Daily Reckoning.

That has to backfire. Even if Americans bought into Wall Street’s scheme, it is doubtful that they have been left with sufficient disposable income to keep it running much longer.

Don’t expect things will improve when QE2 gets mothballed in June. Before you can say QE3 the Fed will be doing whatever it takes to keep Wall Street rolling, and printing money is all Bernanke has left in his toolbox. There is no reason to expect Bernanke won’t be tossing another few trillion into the overfilled pool on top of the half trillion Japan just threw in.

Something has to give. When it does everything will come crashing down. Except, of course, for portfolios shored up with gold bullion investments.

]]>http://www.gold-bullion.org/bullion/cash-vs-goldbullion/#13019435313521http://www.gold-bullion.org/bullion/climbing-demand-forgoldbullion/
Fri, 01 Apr 2011 14:36:03 -0700April 01, 2011 – Demand for gold is climbing and the reasons for buying gold bullion are growing stronger every day. But wait! We have 216,000 new jobs! Hallelujah!

Of course that’s but 1.6% of registered job seekers, and a much tinier percentage of the structurally unemployed. And the backbone of Bernanke’s plans for recovery – exports – is on the ropes.

Global trade is declining at the steepest rate since the Great Depression but far be it from the Fed to learn from history. And far be it from our politicians not to dangle the trade protection carrot in front of us voters, even as the world withdraws behind their own walls.

New protectionist measures are being taken at the remarkable clip of one each day, says Richard Barley in the Wall Street Journal. That on top of capital controls to hold back the floodwaters of cheap dollars. And while QE2 is gratefully slated to end in June, rumors of QE3 are already flying.

Meanwhile the Middle East political unrest is spreading like a wildfire, the European sovereign debt crisis has taken another turn for the worse, and Japan is up to its neck in catastrophe. It’s not looking very good out there.

Some folks are doing OK, though, and they are putting their money where its safe. India, already the world’s largest gold consumer, is expected to increase its consumption by 3% every year for the next decade according to World Gold Council estimates. And China is steadily liquidating its currency-tied holdings and stockpiling gold.

I don’t want to knock good news – we all could use a little encouragement now and then. The danger is in narrowing our vision to those reports so we lose sight of the big picture. We can’t afford to delude ourselves that everything will be better soon. The problems we – and the world – face are too serious and too numerous to ignore.

The occasional positive signs account for the daily volatility in the price of gold, but the overarching uncertainty in the global economy coupled with the growth in demand are holding the medium to long-term forecasts for gold bullion to its strong upward trend.

]]>April 01, 2011 – Demand for gold is climbing and the reasons for buying gold bullion are growing stronger every day. But wait! We have 216,000 new jobs! Hallelujah!

Of course that’s but 1.6% of registered job seekers, and a much tinier percentage of the structurally unemployed. And the backbone of Bernanke’s plans for recovery – exports – is on the ropes.

Global trade is declining at the steepest rate since the Great Depression but far be it from the Fed to learn from history. And far be it from our politicians not to dangle the trade protection carrot in front of us voters, even as the world withdraws behind their own walls.

New protectionist measures are being taken at the remarkable clip of one each day, says Richard Barley in the Wall Street Journal. That on top of capital controls to hold back the floodwaters of cheap dollars. And while QE2 is gratefully slated to end in June, rumors of QE3 are already flying.

Meanwhile the Middle East political unrest is spreading like a wildfire, the European sovereign debt crisis has taken another turn for the worse, and Japan is up to its neck in catastrophe. It’s not looking very good out there.

Some folks are doing OK, though, and they are putting their money where its safe. India, already the world’s largest gold consumer, is expected to increase its consumption by 3% every year for the next decade according to World Gold Council estimates. And China is steadily liquidating its currency-tied holdings and stockpiling gold.

I don’t want to knock good news – we all could use a little encouragement now and then. The danger is in narrowing our vision to those reports so we lose sight of the big picture. We can’t afford to delude ourselves that everything will be better soon. The problems we – and the world – face are too serious and too numerous to ignore.

The occasional positive signs account for the daily volatility in the price of gold, but the overarching uncertainty in the global economy coupled with the growth in demand are holding the medium to long-term forecasts for gold bullion to its strong upward trend.

]]>http://www.gold-bullion.org/bullion/climbing-demand-forgoldbullion/#13016937633517http://www.gold-bullion.org/bullion/hyperinflation-buy-gold/
Wed, 30 Mar 2011 13:24:24 -0700March 30, 2011 - When hyperinflation hits, all the cash in Scrooge McDuck’s vault won’t buy him one milligram of gold bullion. That’s the true nature of hyperinflation: Currency does not become worth less, it becomes worthless.

Those of us who have raised that tattered red flag time and again are usually dismissed out of hand as fear mongers. Those so ready to do so, however, are the very ones who have driven us to the brink. Yet they still insist that all we need is more of the same ludicrous policy to deflate our way out of trouble. And they say that we’re nuts.

What they fail to mention is that hyperinflation - in other words, currency collapse - has been the fate of every single fiat currency throughout history. It has always happened in fewer than one hundred years. And in today’s global climate, that time expectancy has been drastically shortened.

To make matters worse, because of globalization the threat is no longer isolated to a single economy. Japan will be next to join the money printers as it struggles to reconstruct under the crushing burden of debt that is already double its GDP. Mountains of indiscriminately printed paper money will soon account for a huge proportion of global economic activity, and that is a recipe for disaster.

Even as China forges ahead in its bid to become the dominant force in the global market, it has taken strong steps to weather the impending storm. Last week the people of China were told in no uncertain terms to buy gold bullion to protect their wealth and to hedge against collapse of the international monetary system.

Our government doesn’t see things that way, and continues urging Americans to throw their money away on high risk equities that will be as worthless as the dollar should the worst happen.

The end is not as far away as you might think. Only two supports remain for the falling dollar, after which it is anybody’s guess how much longer we will have before hyperinflation strikes.

But there is one undisputable fact. When the end time comes, collapse will be swift and complete. The opportunity to save ourselves will be lost because all the bucks Bernanke can print won’t buy one scintilla of gold bullion.

]]>March 30, 2011 - When hyperinflation hits, all the cash in Scrooge McDuck’s vault won’t buy him one milligram of gold bullion. That’s the true nature of hyperinflation: Currency does not become worth less, it becomes worthless.

Those of us who have raised that tattered red flag time and again are usually dismissed out of hand as fear mongers. Those so ready to do so, however, are the very ones who have driven us to the brink. Yet they still insist that all we need is more of the same ludicrous policy to deflate our way out of trouble. And they say that we’re nuts.

What they fail to mention is that hyperinflation - in other words, currency collapse - has been the fate of every single fiat currency throughout history. It has always happened in fewer than one hundred years. And in today’s global climate, that time expectancy has been drastically shortened.

To make matters worse, because of globalization the threat is no longer isolated to a single economy. Japan will be next to join the money printers as it struggles to reconstruct under the crushing burden of debt that is already double its GDP. Mountains of indiscriminately printed paper money will soon account for a huge proportion of global economic activity, and that is a recipe for disaster.

Even as China forges ahead in its bid to become the dominant force in the global market, it has taken strong steps to weather the impending storm. Last week the people of China were told in no uncertain terms to buy gold bullion to protect their wealth and to hedge against collapse of the international monetary system.

Our government doesn’t see things that way, and continues urging Americans to throw their money away on high risk equities that will be as worthless as the dollar should the worst happen.

The end is not as far away as you might think. Only two supports remain for the falling dollar, after which it is anybody’s guess how much longer we will have before hyperinflation strikes.

But there is one undisputable fact. When the end time comes, collapse will be swift and complete. The opportunity to save ourselves will be lost because all the bucks Bernanke can print won’t buy one scintilla of gold bullion.

]]>http://www.gold-bullion.org/bullion/hyperinflation-buy-gold/#13015166643513http://www.gold-bullion.org/bullion/reasonstobuygoldbullion/
Mon, 28 Mar 2011 13:31:26 -0700March 28, 2011 - There is a very strong possibility of a second dip in the recession and that is a very strong reason to buy gold bullion.

What little progress we have made over the past 18 months has leaned heavily on an unlikely bedfellow - the rest of the world. Now the global inflation in food and fuel spurred - if not caused - by Bernanke’s money printing policy threatens to pull the rug out from under our economy.

Exports have accounted for nearly half of the puny 3% growth we have experienced since the Fed declared the end of the recession, an unprecedented level of dependence on foreign economies. Much of the gains in the manufacturing sector can be attributed to exports, thanks to the transitory advantage of a weakening dollar. At first soaring global food prices gave agriculture a shot in the arm, but it came at the expense of increased risk. Now with input costs soaring as well, a cooling of the global economy would quickly turn the tables.

And that is exactly what we are now seeing. J.P. Morgan has lowered its forecast for global growth this year to 3.4% from 4% as global shocks keep mounting, says the Wall Street Journal. One of the first reactions to a slowing economy will be to cut imports, and that very well might deliver the knockout punch.

Meanwhile the government keeps insisting we put on rose colored glasses. The Commerce Department is expected to tells us today that our inflation adjusted income rose 5% last year. But don’t get your hopes when you get your next paycheck. Since 1970 the percentage of personal income derived from wages has steadily dropped from 75% to only 64% today. So you know who really got that 5%.

An official second dip is looming. But you can hedge the risk of dependence on foreign economies with gold bullion investments.

]]>March 28, 2011 - There is a very strong possibility of a second dip in the recession and that is a very strong reason to buy gold bullion.

What little progress we have made over the past 18 months has leaned heavily on an unlikely bedfellow - the rest of the world. Now the global inflation in food and fuel spurred - if not caused - by Bernanke’s money printing policy threatens to pull the rug out from under our economy.

Exports have accounted for nearly half of the puny 3% growth we have experienced since the Fed declared the end of the recession, an unprecedented level of dependence on foreign economies. Much of the gains in the manufacturing sector can be attributed to exports, thanks to the transitory advantage of a weakening dollar. At first soaring global food prices gave agriculture a shot in the arm, but it came at the expense of increased risk. Now with input costs soaring as well, a cooling of the global economy would quickly turn the tables.

And that is exactly what we are now seeing. J.P. Morgan has lowered its forecast for global growth this year to 3.4% from 4% as global shocks keep mounting, says the Wall Street Journal. One of the first reactions to a slowing economy will be to cut imports, and that very well might deliver the knockout punch.

Meanwhile the government keeps insisting we put on rose colored glasses. The Commerce Department is expected to tells us today that our inflation adjusted income rose 5% last year. But don’t get your hopes when you get your next paycheck. Since 1970 the percentage of personal income derived from wages has steadily dropped from 75% to only 64% today. So you know who really got that 5%.

An official second dip is looming. But you can hedge the risk of dependence on foreign economies with gold bullion investments.

]]>http://www.gold-bullion.org/bullion/reasonstobuygoldbullion/#13013442863509http://www.gold-bullion.org/bullion/price-gold-bullion/
Fri, 25 Mar 2011 14:35:26 -0700March 25, 2011 - What will it take to get the price of gold bullion back to its long-term moving average? Personally, I don’t care. The longer gold stays undervalued the more opportunity I have to invest before the fundamentals inevitably force the market to catch up.

Europe’s debt crisis, which remains a major market driver, is getting worse, not better. Now Portugal is going to need a bailout. And the economy is not recovering - it’s headed the opposite way.

While the Fed proudly announces that manufacturing output has risen for eight months straight, orders for manufacturing machinery have suffered another decline. That’s not a matter of whether the glass is half-full or half-empty. The glass was nearly drained and is now only gradually being refilled. And manufacturers are far from being optimistic enough to expand their capacity.

Estimates for the annual growth in GDP are also steadily sinking. Current estimates from some of the most respected economists lies between 2% and 2.5%. At best that indicates growth is stagnant. More likely we are heading back into recession.

Throughout the last recession and Bernanke’s ill-conceived attempts at recovery, gold bullion has stood strong as safe haven. Yet gold is still a vastly underheld asset. In part that is because retirement funds are only gradually overcoming a long-held but unsupported stigma against gold. And in part it is due to investor uncertainty.

Individual investors have been flooded with so much conflicting news and advice that they just don’t know which way to turn. Like mice in a maze they rush from one dead end to another. They smell the cheese but can never find it.

One day soon, however, they are bound to take that one right turn. They will realize not only that gold is the safest asset they can own, they will realize the immense opportunity present in today’s significantly undervalued gold bullion market.

]]>March 25, 2011 - What will it take to get the price of gold bullion back to its long-term moving average? Personally, I don’t care. The longer gold stays undervalued the more opportunity I have to invest before the fundamentals inevitably force the market to catch up.

Europe’s debt crisis, which remains a major market driver, is getting worse, not better. Now Portugal is going to need a bailout. And the economy is not recovering - it’s headed the opposite way.

While the Fed proudly announces that manufacturing output has risen for eight months straight, orders for manufacturing machinery have suffered another decline. That’s not a matter of whether the glass is half-full or half-empty. The glass was nearly drained and is now only gradually being refilled. And manufacturers are far from being optimistic enough to expand their capacity.

Estimates for the annual growth in GDP are also steadily sinking. Current estimates from some of the most respected economists lies between 2% and 2.5%. At best that indicates growth is stagnant. More likely we are heading back into recession.

Throughout the last recession and Bernanke’s ill-conceived attempts at recovery, gold bullion has stood strong as safe haven. Yet gold is still a vastly underheld asset. In part that is because retirement funds are only gradually overcoming a long-held but unsupported stigma against gold. And in part it is due to investor uncertainty.

Individual investors have been flooded with so much conflicting news and advice that they just don’t know which way to turn. Like mice in a maze they rush from one dead end to another. They smell the cheese but can never find it.

One day soon, however, they are bound to take that one right turn. They will realize not only that gold is the safest asset they can own, they will realize the immense opportunity present in today’s significantly undervalued gold bullion market.

]]>http://www.gold-bullion.org/bullion/price-gold-bullion/#13010889263507http://www.gold-bullion.org/bullion/goldbullion-buffetadvise/
Wed, 23 Mar 2011 12:19:48 -0700March 23, 2011 - Whenever Warren Buffet appears on CNN the investment potential for gold bullion gets called into question. And no wonder. Mr. Buffet is perhaps the best known investment guru among retail investors and there is no questioning his success in the stock market.

Buffet’s philosophy is unwavering: an investment asset should provide income over time, growth in the price of the asset is secondary. Because gold investments produce no income, he considers them to be pure speculation. Buffet’s observation is valid, but only to a point. Whenever he discusses gold he speaks only of short positions. There is little distinction between the long-term appreciation of a fixed asset and plowing dividends back into stocks, however. Neither realizes income until the asset is cashed in.

Using data compiled by Justin Smyth from Berkshire Hathaway’s annual shareholder letters and published in an editorial a few weeks ago we can compare the returns of Buffet’s iconic stock investments to the performance of gold bullion.

$1,000 invested in Berkshire Hathaway at the beginning of each year from 2001 to 2010 would have grown to somewhat less than $17,500 by the end of 2010. However, had the same money been used to buy gold bullion the value today would be more than $28,700. Put another way, Buffet earned a very respectable annualized return of 9.9% but gold almost doubled that at 19.6%.

Doing those same calculations for just the years 2008-2010, when most people lost their shirts, Buffet netted about $700 while the gold investment grew by nearly $1,600.

But what about income? Say you still put $1,000 in every year but at the end of each year you cashed in your returns for income. Gold would have put just shy of $11,000 in your pocket, beating Berkshire Hathaway by $5,300.

In terms of both income and growth, gold bullion investments beat Warren Buffet hands down.

]]>March 23, 2011 - Whenever Warren Buffet appears on CNN the investment potential for gold bullion gets called into question. And no wonder. Mr. Buffet is perhaps the best known investment guru among retail investors and there is no questioning his success in the stock market.

Buffet’s philosophy is unwavering: an investment asset should provide income over time, growth in the price of the asset is secondary. Because gold investments produce no income, he considers them to be pure speculation. Buffet’s observation is valid, but only to a point. Whenever he discusses gold he speaks only of short positions. There is little distinction between the long-term appreciation of a fixed asset and plowing dividends back into stocks, however. Neither realizes income until the asset is cashed in.

Using data compiled by Justin Smyth from Berkshire Hathaway’s annual shareholder letters and published in an editorial a few weeks ago we can compare the returns of Buffet’s iconic stock investments to the performance of gold bullion.

$1,000 invested in Berkshire Hathaway at the beginning of each year from 2001 to 2010 would have grown to somewhat less than $17,500 by the end of 2010. However, had the same money been used to buy gold bullion the value today would be more than $28,700. Put another way, Buffet earned a very respectable annualized return of 9.9% but gold almost doubled that at 19.6%.

Doing those same calculations for just the years 2008-2010, when most people lost their shirts, Buffet netted about $700 while the gold investment grew by nearly $1,600.

But what about income? Say you still put $1,000 in every year but at the end of each year you cashed in your returns for income. Gold would have put just shy of $11,000 in your pocket, beating Berkshire Hathaway by $5,300.

In terms of both income and growth, gold bullion investments beat Warren Buffet hands down.

]]>http://www.gold-bullion.org/bullion/goldbullion-buffetadvise/#13009079883503http://www.gold-bullion.org/bullion/price-of-goldbullion/
Tue, 22 Mar 2011 10:54:24 -0700March 22, 2011 - Sad to say tricks, gimmicks, and the full support of the Fed have pushed Wall Street ahead in the stretch as the price gold bullion, which relies on true value and common sense, has fallen behind. Individual investors need to take a deep breath and let reason return. That hare ain’t about to win the race.

Those crazy days of 2010 with the frenzied swings of risk-on/risk-off retail investors trade are making a comeback. Trying to guess the next unfathomable market movement they respond as a mob racing into and out of markets. They drool in anticipation of the spate of new economic data coming this week, clinging to the delusion that it will have any real significance. But economic data is history, and as has been amply demonstrated of late, that has little to do with the future. So what went wrong?

Nothing. In fact everything is going exactly according to plan - for professional traders, that is. Individuals have to rely on knowledge, insight, and instinct to direct their investments. In a market running on the fundamentals that would put them on equal footing with the insiders, which of course the pros find completely unacceptable.

So over time the concept of real value has been removed from the stock market with the full complicity of the Fed. Now inflated dividends funded by questionable loans and cheap money trump real corporate performance. Huge ETFs buy and sell enormous chunks of markets at whim. And unrestricted gambling by hedge funds using super computers to predict the slightest market movements commonly drive prices contrary to their trends.

Until the market returns to the fundamentals - if that should ever happen - individual investors cannot afford to lose sight of the goal. In the end the race will be won by rational gold bullion investments and not the wild and directionless scampering of the Wall Street hare.

]]>March 22, 2011 - Sad to say tricks, gimmicks, and the full support of the Fed have pushed Wall Street ahead in the stretch as the price gold bullion, which relies on true value and common sense, has fallen behind. Individual investors need to take a deep breath and let reason return. That hare ain’t about to win the race.

Those crazy days of 2010 with the frenzied swings of risk-on/risk-off retail investors trade are making a comeback. Trying to guess the next unfathomable market movement they respond as a mob racing into and out of markets. They drool in anticipation of the spate of new economic data coming this week, clinging to the delusion that it will have any real significance. But economic data is history, and as has been amply demonstrated of late, that has little to do with the future. So what went wrong?

Nothing. In fact everything is going exactly according to plan - for professional traders, that is. Individuals have to rely on knowledge, insight, and instinct to direct their investments. In a market running on the fundamentals that would put them on equal footing with the insiders, which of course the pros find completely unacceptable.

So over time the concept of real value has been removed from the stock market with the full complicity of the Fed. Now inflated dividends funded by questionable loans and cheap money trump real corporate performance. Huge ETFs buy and sell enormous chunks of markets at whim. And unrestricted gambling by hedge funds using super computers to predict the slightest market movements commonly drive prices contrary to their trends.

Until the market returns to the fundamentals - if that should ever happen - individual investors cannot afford to lose sight of the goal. In the end the race will be won by rational gold bullion investments and not the wild and directionless scampering of the Wall Street hare.

There is no way to overplay the significance of events in Japan. The world’s third largest economy is reeling from unprecedented catastrophe with the potential of becoming the worst nuclear disaster ever imagined. After decades of struggling to keep their economy viable while piling up debt double their GDP, the Japanese are left with little alternative but to repatriate their foreign investments.

That means the second largest buyer of US debt may soon withdraw from the market, quite possibly just when the Treasury is set to do likewise, resulting in “higher yields, a weaker dollar and, overall, a more-difficult funding environment for the heavily indebted U.S. government,” said Javier E. David in a Dow Jones Newswire. And yet Treasuries have risen.

The disaster understandably creates a problem for equities as investors seek harbor to wait out the storm. But it makes little sense to abandon oil when the demand is certain to surge as Japan is forced to replace nuclear output in the medium-term.

Most perplexing of all, investors have turned from gold to currency for safe haven. That the Swiss franc has risen to record levels against the dollar certainly makes sense, but so has the yen. And the euro and British pound have slid.

There can be no more clear-cut signs of a market driven by emotion than these. Whenever some unexpected thing of these proportions hits, and there is no historical precedent by which to react, all of the models break down. Lacking common sense, the wizards are helpless.

Gold bullion always has - and forever will - prevail through the worst of times. If you invest in gold bullion now, while big money panics, you will profit handsomely when they regain their senses.

There is no way to overplay the significance of events in Japan. The world’s third largest economy is reeling from unprecedented catastrophe with the potential of becoming the worst nuclear disaster ever imagined. After decades of struggling to keep their economy viable while piling up debt double their GDP, the Japanese are left with little alternative but to repatriate their foreign investments.

That means the second largest buyer of US debt may soon withdraw from the market, quite possibly just when the Treasury is set to do likewise, resulting in “higher yields, a weaker dollar and, overall, a more-difficult funding environment for the heavily indebted U.S. government,” said Javier E. David in a Dow Jones Newswire. And yet Treasuries have risen.

The disaster understandably creates a problem for equities as investors seek harbor to wait out the storm. But it makes little sense to abandon oil when the demand is certain to surge as Japan is forced to replace nuclear output in the medium-term.

Most perplexing of all, investors have turned from gold to currency for safe haven. That the Swiss franc has risen to record levels against the dollar certainly makes sense, but so has the yen. And the euro and British pound have slid.

There can be no more clear-cut signs of a market driven by emotion than these. Whenever some unexpected thing of these proportions hits, and there is no historical precedent by which to react, all of the models break down. Lacking common sense, the wizards are helpless.

Gold bullion always has - and forever will - prevail through the worst of times. If you invest in gold bullion now, while big money panics, you will profit handsomely when they regain their senses.

]]>http://www.gold-bullion.org/bullion/usdebt-goldbullion-investing/#13007221803492http://www.gold-bullion.org/bullion/reasonstoinvestingold/
Thu, 17 Mar 2011 11:38:09 -0700March 17, 2011 – The Fed’s singular lack of success in reviving the economy is alone good reason to invest in gold bullion, but the growing possibility of a repeat of events leading to the crisis – and subsequent surge in gold prices – make it downright foolish not to.

In a desperate bid to get investors back into the equity market Wall Street has turned once again to the “controversial lending practices that proliferated ahead of the financial crisis,” says Nicole Bullock in Financial Times. In order to entice investors with higher dividends notes without the usual investor safeguard of default triggers and those that allow companies to pay their debt with more debt are being issued in record numbers.

Wall street rationalizes the risky practices by claiming that “they prevent investor losses by allowing stretched borrowers to survive without defaulting” – the same lame excuse they used before. Dan Fuss, of money manager Loomis Sayles, says “these are red flags for weakening creditworthiness … Deal structure is very poor.”

Meanwhile, the Fed seems to be leaning towards fanning the flames again. Although stimulus is scheduled to end in June, there is an “underlying lack of investor faith in the ability of the U.S. and world economies to keep expanding without Fed help,” says E. S. Browning in the Wall Street Journal. Even market bulls’ confidence is “based less on a belief in the economy's fundamental strength than on a hope that the Fed will ride to the rescue again.”

However, according to Rasmussen Report polls, the average American doesn’t believe in either. Two-thirds believe that we are still in a recession and almost as many lack confidence in the Fed to pull us out.

The stage is set for another collapse and Americans have no faith in the government to prevent it. What better reason could there be to invest in gold bullion?

]]>March 17, 2011 – The Fed’s singular lack of success in reviving the economy is alone good reason to invest in gold bullion, but the growing possibility of a repeat of events leading to the crisis – and subsequent surge in gold prices – make it downright foolish not to.

In a desperate bid to get investors back into the equity market Wall Street has turned once again to the “controversial lending practices that proliferated ahead of the financial crisis,” says Nicole Bullock in Financial Times. In order to entice investors with higher dividends notes without the usual investor safeguard of default triggers and those that allow companies to pay their debt with more debt are being issued in record numbers.

Wall street rationalizes the risky practices by claiming that “they prevent investor losses by allowing stretched borrowers to survive without defaulting” – the same lame excuse they used before. Dan Fuss, of money manager Loomis Sayles, says “these are red flags for weakening creditworthiness … Deal structure is very poor.”

Meanwhile, the Fed seems to be leaning towards fanning the flames again. Although stimulus is scheduled to end in June, there is an “underlying lack of investor faith in the ability of the U.S. and world economies to keep expanding without Fed help,” says E. S. Browning in the Wall Street Journal. Even market bulls’ confidence is “based less on a belief in the economy's fundamental strength than on a hope that the Fed will ride to the rescue again.”

However, according to Rasmussen Report polls, the average American doesn’t believe in either. Two-thirds believe that we are still in a recession and almost as many lack confidence in the Fed to pull us out.

The stage is set for another collapse and Americans have no faith in the government to prevent it. What better reason could there be to invest in gold bullion?

]]>http://www.gold-bullion.org/bullion/reasonstoinvestingold/#13003870893491http://www.gold-bullion.org/bullion/wheretobuygoldbullion/
Wed, 16 Mar 2011 15:33:10 -0700March 16, 2011 – The mountains of government economic indicators are both confusing and useless to most individual investors in gold bullion. That’s because they live in the real world.

John next door flips burgers by day and stocks Wal-Mart shelves at night. Bill and Mary across the street brace for foreclosure when Bill’s unemployment benefits expire next month. No matter how high the stock market climbs, and no matter what the Fed wants us to believe, in the long run it is how well the average person is doing that determines the health of the economy. And according to The Rasmussen Consumer Index, consumer confidence is the lowest it has been since last September.

The Index is a highly reliable indicator of consumer economic confidence based on the three- day moving average of data gathered from nightly surveys of ordinary people. That figure is now 75.4 compared to a baseline of 100 set in October 2001 and is 14 points lower than just one month ago.

The disparity between the Index and Wall Street sentiment should come as no surprise. While insiders are rolling in Bernanke bucks, two thirds of the general population consider their finances to be less than good, and a full quarter rate their condition as poor.

Consumers have no reason to believe the economy is recovering. Many are buried under enormous negative equity in their homes. As wage growth remains stagnant, gas and food prices have sharply curtailed what little disposable income people have left. Vast amounts of personal debt have been deleveraged through default, putting further credit out of reach. And structural unemployment is pandemic, making future prospects dismal for millions.

What will happen when the Fed withdraws from “quantitative easing” in June is hotly debated, with expert opinion split between inflation and a slide into double-dip recession. No matter how the tide turns, however, gold bullion investments offer the security that the dollar can no longer provide.

]]>March 16, 2011 – The mountains of government economic indicators are both confusing and useless to most individual investors in gold bullion. That’s because they live in the real world.

John next door flips burgers by day and stocks Wal-Mart shelves at night. Bill and Mary across the street brace for foreclosure when Bill’s unemployment benefits expire next month. No matter how high the stock market climbs, and no matter what the Fed wants us to believe, in the long run it is how well the average person is doing that determines the health of the economy. And according to The Rasmussen Consumer Index, consumer confidence is the lowest it has been since last September.

The Index is a highly reliable indicator of consumer economic confidence based on the three- day moving average of data gathered from nightly surveys of ordinary people. That figure is now 75.4 compared to a baseline of 100 set in October 2001 and is 14 points lower than just one month ago.

The disparity between the Index and Wall Street sentiment should come as no surprise. While insiders are rolling in Bernanke bucks, two thirds of the general population consider their finances to be less than good, and a full quarter rate their condition as poor.

Consumers have no reason to believe the economy is recovering. Many are buried under enormous negative equity in their homes. As wage growth remains stagnant, gas and food prices have sharply curtailed what little disposable income people have left. Vast amounts of personal debt have been deleveraged through default, putting further credit out of reach. And structural unemployment is pandemic, making future prospects dismal for millions.

What will happen when the Fed withdraws from “quantitative easing” in June is hotly debated, with expert opinion split between inflation and a slide into double-dip recession. No matter how the tide turns, however, gold bullion investments offer the security that the dollar can no longer provide.

]]>http://www.gold-bullion.org/bullion/wheretobuygoldbullion/#13003147903487http://www.gold-bullion.org/bullion/goldbullion-risk-aversion/
Tue, 15 Mar 2011 13:15:03 -0700March 15, 2011 – Gold bullion investment is rapidly becoming less an issue of risk-aversion and more of something much more primal. Everybody has a different appetite for risk but we all are genetically endowed with the instinct to survive.

Unfortunately the survival instinct prevents most highly respected economists from voicing their real vision of impending financial and social calamity out of fear of sounding inflammatory and losing credibility among their peers. One highly respected author and free market economist, however has taken that risk writing for the Daily Reckoning.

Doug Casey is best known for his expertise in profiting from economic turmoil. He believes that “if you understand what's going on and prepare for it, you can do well enough” financially even through what he predicts will be “a time of troubles at least as bad as any experienced in any advanced country in the last century.” The real threat, Casey says, will come from the very bureaucracy we have created because Americans “prefer the appearance of security to the prospect of having to take personal responsibility.”

Bureaucracies ultimately will act solely for self preservation. They grow in size and seize ever greater power by spreading the illusion of benevolence. As our government burgeoned throughout the past century Americans came to depend on it to protect them from every possible harm. In exchange we willfully began to surrender our rights. And when 9/11 struck, we let fear dictate the hour and gave our government unprecedented power over our private lives.

“The US has been on the road to becoming a police state for quite a while,” Casey says, “and it's likely to go into hyper-drive … as the economy emerges from the eye of the storm.”

Nobody can say for sure how it will all play out, but one thing is certain: gold bullion investments are your best insurance against the worst that can happen.

]]>March 15, 2011 – Gold bullion investment is rapidly becoming less an issue of risk-aversion and more of something much more primal. Everybody has a different appetite for risk but we all are genetically endowed with the instinct to survive.

Unfortunately the survival instinct prevents most highly respected economists from voicing their real vision of impending financial and social calamity out of fear of sounding inflammatory and losing credibility among their peers. One highly respected author and free market economist, however has taken that risk writing for the Daily Reckoning.

Doug Casey is best known for his expertise in profiting from economic turmoil. He believes that “if you understand what's going on and prepare for it, you can do well enough” financially even through what he predicts will be “a time of troubles at least as bad as any experienced in any advanced country in the last century.” The real threat, Casey says, will come from the very bureaucracy we have created because Americans “prefer the appearance of security to the prospect of having to take personal responsibility.”

Bureaucracies ultimately will act solely for self preservation. They grow in size and seize ever greater power by spreading the illusion of benevolence. As our government burgeoned throughout the past century Americans came to depend on it to protect them from every possible harm. In exchange we willfully began to surrender our rights. And when 9/11 struck, we let fear dictate the hour and gave our government unprecedented power over our private lives.

“The US has been on the road to becoming a police state for quite a while,” Casey says, “and it's likely to go into hyper-drive … as the economy emerges from the eye of the storm.”

Nobody can say for sure how it will all play out, but one thing is certain: gold bullion investments are your best insurance against the worst that can happen.

“The value of bets against the dollar on the CME rose … to $39bn, $3bn more than the previous record … in 2007,” says Garnham, while “short dollar positions surged from 200,564 contracts to 281,088.”

While investors are betting against the dollar, they are having a change of heart regarding the euro in anticipation of the ECB raising interest rates in April. Accordingly “the euro last week rose to a four-month high of $1.3997 against the dollar.” Kit Juckes, head of FX strategy at Société Générale, sees recent losses in the dollar as “a turn in the longer-term outlook for the dollar – for the worse.”

It would seem that currency speculators are finally peering behind the veil of the government’s doctored statistics. A case in point: the stunning addition of 250,000 jobs in February and dramatic drop in unemployment to below the stubborn 9% threshold.

All very impressive, but when you add in everyone who has thrown in the towel after trying unsuccessfully for more than a year to find a job - the Labor Department’s U-6, or labor underutilization rate – the real figure is 15.9%, says Phil Izzo in the Wall Street Journal.

Nearly one third of the unemployed have been so for more than a year, a considerably higher percentage than at any other time. Because many have given up, the ‘labor force participation rate’ is now at its lowest level since 1984. Adding jobs will encourage many to start looking for work again, swelling the available labor pool and raising the unemployment rate.

As the world wakes up to the fact that the Fed is fighting a losing battle the dollar will fall – and gold bullion prices will rise.

“The value of bets against the dollar on the CME rose … to $39bn, $3bn more than the previous record … in 2007,” says Garnham, while “short dollar positions surged from 200,564 contracts to 281,088.”

While investors are betting against the dollar, they are having a change of heart regarding the euro in anticipation of the ECB raising interest rates in April. Accordingly “the euro last week rose to a four-month high of $1.3997 against the dollar.” Kit Juckes, head of FX strategy at Société Générale, sees recent losses in the dollar as “a turn in the longer-term outlook for the dollar – for the worse.”

It would seem that currency speculators are finally peering behind the veil of the government’s doctored statistics. A case in point: the stunning addition of 250,000 jobs in February and dramatic drop in unemployment to below the stubborn 9% threshold.

All very impressive, but when you add in everyone who has thrown in the towel after trying unsuccessfully for more than a year to find a job - the Labor Department’s U-6, or labor underutilization rate – the real figure is 15.9%, says Phil Izzo in the Wall Street Journal.

Nearly one third of the unemployed have been so for more than a year, a considerably higher percentage than at any other time. Because many have given up, the ‘labor force participation rate’ is now at its lowest level since 1984. Adding jobs will encourage many to start looking for work again, swelling the available labor pool and raising the unemployment rate.

As the world wakes up to the fact that the Fed is fighting a losing battle the dollar will fall – and gold bullion prices will rise.

]]>http://www.gold-bullion.org/bullion/buygoldbullion-while-thepriceisright/#12997892893478http://www.gold-bullion.org/bullion/gold-bullion-scam/
Sat, 05 Mar 2011 14:40:42 -0800March 05, 2011 – Every time the stock market rebounds Wall Street is quick to proclaim that gold bullion prices have hit their ceiling and the Fed declares that it has succeeded in saving the economy. But despite all of that chest thumping, neither has had much to do with what is really going on.

The rest of the world is just acting in its own best interest and is taking advantage of America’s delusional state. Suppose, for instance, that you are in control of China’s central bank. It has been your plan all along to overtake the US and replace the dollar with the yuan, but first you had to grow your nascent economy at a stellar pace while maintaining stability to allow your currency to mature.

In the early years that meant hitching your wagon to the dollar through heavy investments in US sovereign debt securities. At the time the sheer size of the US economy gave the dollar the stability necessary to become the dominant safe haven and the clout required to become the standard in international transactions. But now you see the value of the dollar eroding exponentially, threatening a huge proportion of your sovereign wealth.

You can’t afford to dump your holdings because that would render them virtually worthless overnight. And no other currency is ready to step into the dollar’s shoes. So despite being the world’s largest gold producer, you begin importing vast quantities of gold bullion. And you begin gradually divesting yourself of toxic US sovereign debt.

While doing so it is in your best interest to manipulate the markets in whatever way you can to hold down the price of gold while bolstering the dollar and US equities. Rather than fall for the ruse, individual investors should simply play along with the scam and put their money into gold bullion.

]]>March 05, 2011 – Every time the stock market rebounds Wall Street is quick to proclaim that gold bullion prices have hit their ceiling and the Fed declares that it has succeeded in saving the economy. But despite all of that chest thumping, neither has had much to do with what is really going on.

The rest of the world is just acting in its own best interest and is taking advantage of America’s delusional state. Suppose, for instance, that you are in control of China’s central bank. It has been your plan all along to overtake the US and replace the dollar with the yuan, but first you had to grow your nascent economy at a stellar pace while maintaining stability to allow your currency to mature.

In the early years that meant hitching your wagon to the dollar through heavy investments in US sovereign debt securities. At the time the sheer size of the US economy gave the dollar the stability necessary to become the dominant safe haven and the clout required to become the standard in international transactions. But now you see the value of the dollar eroding exponentially, threatening a huge proportion of your sovereign wealth.

You can’t afford to dump your holdings because that would render them virtually worthless overnight. And no other currency is ready to step into the dollar’s shoes. So despite being the world’s largest gold producer, you begin importing vast quantities of gold bullion. And you begin gradually divesting yourself of toxic US sovereign debt.

While doing so it is in your best interest to manipulate the markets in whatever way you can to hold down the price of gold while bolstering the dollar and US equities. Rather than fall for the ruse, individual investors should simply play along with the scam and put their money into gold bullion.

]]>http://www.gold-bullion.org/bullion/gold-bullion-scam/#12993648423474http://www.gold-bullion.org/bullion/US-Gold-Bullion/
Wed, 02 Mar 2011 10:31:50 -0800March 02, 2011 – The states are about to give gold bullion investments a real boost - more than a dozen have proposed legislation to protect themselves by adopting gold coins as their primary currency.

Most of the states are following a template know as the "Constitutional Tender Act," in reference to Article I, Section 10 of the US Constitution, which forbids states from making "any Thing but gold and silver Coin a Tender in Payment of Debts." Consequently the Act stipulates that “the state and political subdivisions shall not compel or require any person to recognize . . . anything but gold and silver coin.”

The legislation is necessary because “the Federal Reserve System’s currency is not redeemable in gold or silver,” and that is “a, if not the, major reason for the [Fed’s] ever-increasing instability.” Furthermore, the states “can avoid or at least mitigate many of the economic, social, and political shocks to be expected to arise from hyperinflation, depression, or other economic calamity . . . only through the timely adoption of an alternative sound currency.”

In support of the action the legislation cites the Supreme Court decision in Lane County v. Oregon, which “ruled that the States may adopt whatever currency they desire . . . even to the extent of adopting gold and silver coin . . . while refusing to employ a currency not redeemable in gold or silver coin that Congress has designated ‘legal tender’.”

As the movement among the states to shelter their economies from the Fed’s destructive policies gains momentum, the demise of the dollar will quickly follow. And the state imposed conversion to hard currency is bound to have profound impact on the global monetary system as well.

Those who have the foresight to invest in gold bullion today will be greatly rewarded by the imminent return to hard currency.

]]>March 02, 2011 – The states are about to give gold bullion investments a real boost - more than a dozen have proposed legislation to protect themselves by adopting gold coins as their primary currency.

Most of the states are following a template know as the "Constitutional Tender Act," in reference to Article I, Section 10 of the US Constitution, which forbids states from making "any Thing but gold and silver Coin a Tender in Payment of Debts." Consequently the Act stipulates that “the state and political subdivisions shall not compel or require any person to recognize . . . anything but gold and silver coin.”

The legislation is necessary because “the Federal Reserve System’s currency is not redeemable in gold or silver,” and that is “a, if not the, major reason for the [Fed’s] ever-increasing instability.” Furthermore, the states “can avoid or at least mitigate many of the economic, social, and political shocks to be expected to arise from hyperinflation, depression, or other economic calamity . . . only through the timely adoption of an alternative sound currency.”

In support of the action the legislation cites the Supreme Court decision in Lane County v. Oregon, which “ruled that the States may adopt whatever currency they desire . . . even to the extent of adopting gold and silver coin . . . while refusing to employ a currency not redeemable in gold or silver coin that Congress has designated ‘legal tender’.”

As the movement among the states to shelter their economies from the Fed’s destructive policies gains momentum, the demise of the dollar will quickly follow. And the state imposed conversion to hard currency is bound to have profound impact on the global monetary system as well.

Those who have the foresight to invest in gold bullion today will be greatly rewarded by the imminent return to hard currency.

]]>http://www.gold-bullion.org/bullion/US-Gold-Bullion/#12990907103470http://www.gold-bullion.org/bullion/diversify-into-goldbullioncoins/
Tue, 01 Mar 2011 14:32:18 -0800March 1, 2011 – A very odd thing is happening on Wall Street – people who you would expect to be putting their money into gold bullion are actually being drawn back to equities. “Many of the retail investors now getting back into stocks are the same people who bailed from the market just before the start of a historic bull run,” says Jason Zweig in the Wall Street Journal. “If they sold stocks because they couldn't stand the pain of loss, their risk tolerance wasn't as high as they once believed.”

So why are they once again being duped? “Behavioral science tells us that bankers and politicians are lying to us 93% of the time,” says Paul B. Farrell in Market Watch, and the same goes for Wall Street. But humans are prone to repeating mistakes because we are “driven by what psychologists call ‘counterfactual regret’ - the haunting sense of what might have been,” says Zweig. “The memories of loss in the financial crisis already are fading, while the regrets over being out of stocks are refreshed every day the market goes up.”

That’s why the Wall Street casino works. Individual investors invariably panic on the downside and sell just before the market bottoms out. Insiders scoop up the bargain equities and ride the upside until just before it peaks - precisely when timid individuals decide to get back into the game.

As Zweig reports, Golden Gate University business professor Michal Strahilevitz adds that investors are also driven by “the trauma of watching the market go up and realizing that they'd be better off if only they hadn't gotten out.” She suggests you think about going back to stocks and if it causes your heart to race, “then you're probably not being rational.”

What is rational is breaking the pattern. Instead of falling for the same old lies, put your money where you can feel secure – invest in gold bullion.

]]>March 1, 2011 – A very odd thing is happening on Wall Street – people who you would expect to be putting their money into gold bullion are actually being drawn back to equities. “Many of the retail investors now getting back into stocks are the same people who bailed from the market just before the start of a historic bull run,” says Jason Zweig in the Wall Street Journal. “If they sold stocks because they couldn't stand the pain of loss, their risk tolerance wasn't as high as they once believed.”

So why are they once again being duped? “Behavioral science tells us that bankers and politicians are lying to us 93% of the time,” says Paul B. Farrell in Market Watch, and the same goes for Wall Street. But humans are prone to repeating mistakes because we are “driven by what psychologists call ‘counterfactual regret’ - the haunting sense of what might have been,” says Zweig. “The memories of loss in the financial crisis already are fading, while the regrets over being out of stocks are refreshed every day the market goes up.”

That’s why the Wall Street casino works. Individual investors invariably panic on the downside and sell just before the market bottoms out. Insiders scoop up the bargain equities and ride the upside until just before it peaks - precisely when timid individuals decide to get back into the game.

As Zweig reports, Golden Gate University business professor Michal Strahilevitz adds that investors are also driven by “the trauma of watching the market go up and realizing that they'd be better off if only they hadn't gotten out.” She suggests you think about going back to stocks and if it causes your heart to race, “then you're probably not being rational.”

What is rational is breaking the pattern. Instead of falling for the same old lies, put your money where you can feel secure – invest in gold bullion.

]]>http://www.gold-bullion.org/bullion/diversify-into-goldbullioncoins/#12990187383466http://www.gold-bullion.org/bullion/whygoldbullioninvesting/
Mon, 28 Feb 2011 13:45:53 -0800February 28, 2011 – Just how much trouble the dollar is in – and how important gold bullion investments have become – is aptly demonstrated by the upheaval in the middle east and the subsequent surge in oil prices.

It used to be that the dollar soared under risk-off situations, but now the currencies of other nations are gaining against the dollar. And Americans, who once took oil price spikes in stride, now must compensate in order to make ends meet.

The Wall Street Journal says Ken Fisher, chief executive of Fisher Investments, believes that “the U.S. economy has recovered enough that it can handle the impact of higher oil prices,” but clearly he hasn’t climbed down from his ivory tower lately. Every extra penny that the average American puts in the tank these days is a penny taken away from retail purchases. As demand declines manufacturing slows, hiring is reduced, and capital investments are postponed. The recent reversals in the stock market strongly suggest a growing risk-off sentiment.

The Fed can be largely blamed for the dollar’s woes. “With economic indicators like new home sales, jobless claims and durable goods orders, all released today, pointing to a slow, uneven recovery with little job growth,” says blogger Kelley Holland on CNBC.com, the Fed is certain to stick with its ultra-low interest policy, based on inflation figures that dismiss the price of oil.

Central banks in the real world, however, base their figures on headline inflation. They are very likely to adjust rates upward to counter rising oil prices, and that makes their currencies more attractive to investors. And nations such as Canada and Norway have the further advantage of being oil exporters.

The lesson here is not about oil or political unrest, however. It is simply that the dollar can no longer keep pace with the global economy. Fortunately, the value of gold bullion can.

]]>February 28, 2011 – Just how much trouble the dollar is in – and how important gold bullion investments have become – is aptly demonstrated by the upheaval in the middle east and the subsequent surge in oil prices.

It used to be that the dollar soared under risk-off situations, but now the currencies of other nations are gaining against the dollar. And Americans, who once took oil price spikes in stride, now must compensate in order to make ends meet.

The Wall Street Journal says Ken Fisher, chief executive of Fisher Investments, believes that “the U.S. economy has recovered enough that it can handle the impact of higher oil prices,” but clearly he hasn’t climbed down from his ivory tower lately. Every extra penny that the average American puts in the tank these days is a penny taken away from retail purchases. As demand declines manufacturing slows, hiring is reduced, and capital investments are postponed. The recent reversals in the stock market strongly suggest a growing risk-off sentiment.

The Fed can be largely blamed for the dollar’s woes. “With economic indicators like new home sales, jobless claims and durable goods orders, all released today, pointing to a slow, uneven recovery with little job growth,” says blogger Kelley Holland on CNBC.com, the Fed is certain to stick with its ultra-low interest policy, based on inflation figures that dismiss the price of oil.

Central banks in the real world, however, base their figures on headline inflation. They are very likely to adjust rates upward to counter rising oil prices, and that makes their currencies more attractive to investors. And nations such as Canada and Norway have the further advantage of being oil exporters.

The lesson here is not about oil or political unrest, however. It is simply that the dollar can no longer keep pace with the global economy. Fortunately, the value of gold bullion can.

Gold bullion is a well-proven haven from inflation, currency collapse, and social/political upheaval, all of which are now brewing at the same time. Around the world excess liquidity in the dollar, which is the global reserve currency, is fueling inflation. Calls to replace the dollar are growing louder and more urgent daily. And the turmoil in the Middle East has put a big chunk of the world’s oil production at risk and threatens the underpinnings of global economic stability.

Understandably, investor risk aversion is driving them away from traditional investments and it handed Wall Street its worst single-day decline since late last summer. No so understandable is why they are seeking haven in the traditional manner: investing in the dollar and hedging that with gold. It seems to me they got things backwards.

The dollar’s decline is inevitable and has been delayed only for lack of an alternative. But the IMF and World Bank are in overdrive seeking a more stable substitute. How the stigma against gold can persist in today’s economic climate a bit of a puzzle. I suspect that it’s because gold bullion investing is just too simple a concept for big investors’ highly sophisticated minds. Eventually, however, they will have to choose between ditching all of their complex junk in favor of gold and wallowing in a mountain of worthless bucks.

Individual investors however, have the gift of common sense. They are all too aware of the dollar’s shrinking value and they are questioning the incessant propaganda from the government and Wall Street more each day.

Understanding that the price of gold bullion could climb 500% without hitting the ceiling presents us with a rare opportunity to be the ones crowing when the big boys come home to roost.

]]>February 25, 2011 – A perfect storm is gathering from which gold bullion investments might well provide the only shelter.

Gold bullion is a well-proven haven from inflation, currency collapse, and social/political upheaval, all of which are now brewing at the same time. Around the world excess liquidity in the dollar, which is the global reserve currency, is fueling inflation. Calls to replace the dollar are growing louder and more urgent daily. And the turmoil in the Middle East has put a big chunk of the world’s oil production at risk and threatens the underpinnings of global economic stability.

Understandably, investor risk aversion is driving them away from traditional investments and it handed Wall Street its worst single-day decline since late last summer. No so understandable is why they are seeking haven in the traditional manner: investing in the dollar and hedging that with gold. It seems to me they got things backwards.

The dollar’s decline is inevitable and has been delayed only for lack of an alternative. But the IMF and World Bank are in overdrive seeking a more stable substitute. How the stigma against gold can persist in today’s economic climate a bit of a puzzle. I suspect that it’s because gold bullion investing is just too simple a concept for big investors’ highly sophisticated minds. Eventually, however, they will have to choose between ditching all of their complex junk in favor of gold and wallowing in a mountain of worthless bucks.

Individual investors however, have the gift of common sense. They are all too aware of the dollar’s shrinking value and they are questioning the incessant propaganda from the government and Wall Street more each day.

Understanding that the price of gold bullion could climb 500% without hitting the ceiling presents us with a rare opportunity to be the ones crowing when the big boys come home to roost.

According to the Financial Times of London, ordinary Chinese citizens have driven gold imports up 500%, despite China’s domestic production being the world’s largest. Much to Bernanke’s chagrin, the Chinese appear to value long term security over wanton consumerism, and that doesn’t fit well with his plans.

Part of the individual investors’ caution can be attributed to the prevailing academic sentiment that Wall Street is the place to be because Fed policy is working. But the objectivity of the leading economic journals is highly questionable. Academicians must publish or perish, and the Fed has a lot to say about what gets published.

A HuffPost study revealed that out of 190 editorial board members at seven leading journals, 84 “were affiliated with the Federal Reserve in one way or another.” And “at the Journal of Monetary Economics, every single member of the editorial board is or has been affiliated with the Fed and 14 of the 26 board members are presently on the Fed payroll.” With tenure at stake, it is career suicide to proffer opinions contrary to those of the Fed.

Because Americans trust the government and confuse education with wisdom, however, Bernanke’s self-destructive policies roll on unabated as the crisis deepens. “State and municipal governments are . . . expecting a federal bailout,” says Congressman Patrick McHenry. But there will be no bailouts. That leaves only default, which would topple the already shaky $2.8 trillion municipal bond market.

Someday American investors will wake up en masse to economic reality and will stampede the gold market. For the moment, however, dramatically increasing global demand, severely lagging production, and indifference among American investors have created the perfect condition for gold bullion investments.

]]>February 23, 2011 - America’s bargain days for gold bullion investing are still holding on as speculation wanes and individuals continue to shy away from gold. That’s an enigma.

According to the Financial Times of London, ordinary Chinese citizens have driven gold imports up 500%, despite China’s domestic production being the world’s largest. Much to Bernanke’s chagrin, the Chinese appear to value long term security over wanton consumerism, and that doesn’t fit well with his plans.

Part of the individual investors’ caution can be attributed to the prevailing academic sentiment that Wall Street is the place to be because Fed policy is working. But the objectivity of the leading economic journals is highly questionable. Academicians must publish or perish, and the Fed has a lot to say about what gets published.

A HuffPost study revealed that out of 190 editorial board members at seven leading journals, 84 “were affiliated with the Federal Reserve in one way or another.” And “at the Journal of Monetary Economics, every single member of the editorial board is or has been affiliated with the Fed and 14 of the 26 board members are presently on the Fed payroll.” With tenure at stake, it is career suicide to proffer opinions contrary to those of the Fed.

Because Americans trust the government and confuse education with wisdom, however, Bernanke’s self-destructive policies roll on unabated as the crisis deepens. “State and municipal governments are . . . expecting a federal bailout,” says Congressman Patrick McHenry. But there will be no bailouts. That leaves only default, which would topple the already shaky $2.8 trillion municipal bond market.

Someday American investors will wake up en masse to economic reality and will stampede the gold market. For the moment, however, dramatically increasing global demand, severely lagging production, and indifference among American investors have created the perfect condition for gold bullion investments.

]]>http://www.gold-bullion.org/bullion/gold-bullion-buying/#12984847643453http://www.gold-bullion.org/bullion/gold-bullion-ira/
Fri, 18 Feb 2011 13:01:45 -0800February 18, 2011 – The era of entitlement is over, and as we enter a new age of self reliance gold bullion investments will play an ever greater role in our prosperity.

Our government was designed to be only the protector of it people, and for 150 years it was the greatest government ever conceived. But over the past century we strayed far from the path.

Following victory in two world wars our government took on a military role far beyond the explicit intent of the Constitution. George Washington’s warning about foreign entanglements was not a plea for isolationism but rather an admonishment not to interfere with the affairs of other nations unless they pose a clear and immediate threat to our security. Our military presence throughout the world today is an unnecessary relic that only weakens the government’s ability to protect its citizens.

The government has also perverted its duty to ensure its citizens the right to life, liberty, and the pursuit of happiness.

No American should have to suffer for lack of the basic necessities, even when their situations are of their own doing. We simply don’t have the ability to accurately segregate those who have done their best and failed from those who have never even tried. But we have allowed the government to become our benefactor while we abrogated all personal responsibility for our lives. And we have paid for it with our liberty.

Liberty gives us the freedom to pursue happiness as we see fit, but it also gives us the duty to bear the consequences of the choices we make. When the government tries to shield us from all harm, we are deprived of the very things that make life worth living.

The big government experiment has failed; the time has come to take back our liberty. And the first step towards self reliance should be a healthy investment in gold bullion.

]]>February 18, 2011 – The era of entitlement is over, and as we enter a new age of self reliance gold bullion investments will play an ever greater role in our prosperity.

Our government was designed to be only the protector of it people, and for 150 years it was the greatest government ever conceived. But over the past century we strayed far from the path.

Following victory in two world wars our government took on a military role far beyond the explicit intent of the Constitution. George Washington’s warning about foreign entanglements was not a plea for isolationism but rather an admonishment not to interfere with the affairs of other nations unless they pose a clear and immediate threat to our security. Our military presence throughout the world today is an unnecessary relic that only weakens the government’s ability to protect its citizens.

The government has also perverted its duty to ensure its citizens the right to life, liberty, and the pursuit of happiness.

No American should have to suffer for lack of the basic necessities, even when their situations are of their own doing. We simply don’t have the ability to accurately segregate those who have done their best and failed from those who have never even tried. But we have allowed the government to become our benefactor while we abrogated all personal responsibility for our lives. And we have paid for it with our liberty.

Liberty gives us the freedom to pursue happiness as we see fit, but it also gives us the duty to bear the consequences of the choices we make. When the government tries to shield us from all harm, we are deprived of the very things that make life worth living.

The big government experiment has failed; the time has come to take back our liberty. And the first step towards self reliance should be a healthy investment in gold bullion.

]]>http://www.gold-bullion.org/bullion/gold-bullion-ira/#12980629053449http://www.gold-bullion.org/bullion/stagnation-and-goldbullion/
Wed, 16 Feb 2011 11:18:04 -0800February 16, 2011 – America’s near future is not a pretty picture, but we can make the most of it by investing in gold bullion. All the talk about economic recovery has been aimed at restoring the annual GDP growth to the 50-year average level of 3.3%, but “without a big productivity boost, the U.S. may be heading for decades of stagnation,” says Justin Lahart in a Wall Street Journal blog.

Productivity gains account for only half of that historical growth, Lahart says, with the balance attributable to steady expansion of the labor force. Now, however, the growth in the labor force is rapidly declining as baby boomers retire and participation by women levels off. “As a result, the contribution to economic growth from a growing labor force will amount to only 0.5% a year over the next decade.”

It is possible to boost real productivity to compensate for the declining contribution of the labor force, but naturally industry is taking the short-term view while the government remains focused on the quick fix. R & D investment has decreased significantly in recent years as has growth in business expenditures for capital equipment and software. What productivity gains there have been are focused on efficiency rather “than on making higher quality and more advanced products that improve people’s lives,” which is the only sustainable driver of increased productivity.

If productivity gains continue at the historical rate, the annual growth in GDP will drop to 2.2%, a decidedly sluggish performance that would see our living standards fall ever farther behind those in the emerging economies. It would be “bad news for the dollar, for stocks and for bonds (and therefore interest rates). It would make the nation more prone to recession.”

The good news, however, is that gold bullion investments will not stagnate but will continue to follow the growth of the global economy as a whole.

]]>February 16, 2011 – America’s near future is not a pretty picture, but we can make the most of it by investing in gold bullion. All the talk about economic recovery has been aimed at restoring the annual GDP growth to the 50-year average level of 3.3%, but “without a big productivity boost, the U.S. may be heading for decades of stagnation,” says Justin Lahart in a Wall Street Journal blog.

Productivity gains account for only half of that historical growth, Lahart says, with the balance attributable to steady expansion of the labor force. Now, however, the growth in the labor force is rapidly declining as baby boomers retire and participation by women levels off. “As a result, the contribution to economic growth from a growing labor force will amount to only 0.5% a year over the next decade.”

It is possible to boost real productivity to compensate for the declining contribution of the labor force, but naturally industry is taking the short-term view while the government remains focused on the quick fix. R & D investment has decreased significantly in recent years as has growth in business expenditures for capital equipment and software. What productivity gains there have been are focused on efficiency rather “than on making higher quality and more advanced products that improve people’s lives,” which is the only sustainable driver of increased productivity.

If productivity gains continue at the historical rate, the annual growth in GDP will drop to 2.2%, a decidedly sluggish performance that would see our living standards fall ever farther behind those in the emerging economies. It would be “bad news for the dollar, for stocks and for bonds (and therefore interest rates). It would make the nation more prone to recession.”

The good news, however, is that gold bullion investments will not stagnate but will continue to follow the growth of the global economy as a whole.

The Chinese people are already gravely concerned over our debt to them, despite their government’s very public statements that so far they have lost no money on that debt. But “most of China's $2.85 trillion in reserves is invested in dollar assets,” says the Wall Street Journal, and if I were Chinese $1.65 trillion in new debt would not give me a warm fuzzy feeling.

A senior economist at China’s Industrial Bank Co., finds little assurance in Obama’s promises to honor Fannie Mae and Freddie Mac securities, which constitute the bulk of Chinese held long- term debt. "Looking at the current political situation in the U.S., for the U.S. Congress to give a clear guarantee on this issue is almost impossible," he said. The Chinese International Finance News echoes the concern, “saying that losses on China's Fannie and Freddie holdings could reach $450 billion.”

The concerns about the dollar are well founded, and the Chinese government is well aware of it. Last year it launched a program to induce private investment in gold bullion and even opened the door to investments in foreign gold. In addition, China greatly increased its gold imports, doing what all smart investors are doing: hedging their dollar-tied assets with gold.

Politicians on both sides of the aisle are displaying no signs of fiscal responsibility. We can’t spend our way out of this mess, but neither can we afford to fan the flames by slashing support for the states and blocking urgently needed repair of our infrastructure.

We would all do well to take a cue from China and stock up on gold bullion.

]]>February 14, 2011 - $1.65 trillion in new borrowing – if that isn’t a flashing neon sign saying “buy gold bullion,” I don’t know what is. Perhaps $3.73 trillion – that’s the new budget. No matter how you slice it, those figures aren’t going to resonate well with global opinion.

The Chinese people are already gravely concerned over our debt to them, despite their government’s very public statements that so far they have lost no money on that debt. But “most of China's $2.85 trillion in reserves is invested in dollar assets,” says the Wall Street Journal, and if I were Chinese $1.65 trillion in new debt would not give me a warm fuzzy feeling.

A senior economist at China’s Industrial Bank Co., finds little assurance in Obama’s promises to honor Fannie Mae and Freddie Mac securities, which constitute the bulk of Chinese held long- term debt. "Looking at the current political situation in the U.S., for the U.S. Congress to give a clear guarantee on this issue is almost impossible," he said. The Chinese International Finance News echoes the concern, “saying that losses on China's Fannie and Freddie holdings could reach $450 billion.”

The concerns about the dollar are well founded, and the Chinese government is well aware of it. Last year it launched a program to induce private investment in gold bullion and even opened the door to investments in foreign gold. In addition, China greatly increased its gold imports, doing what all smart investors are doing: hedging their dollar-tied assets with gold.

Politicians on both sides of the aisle are displaying no signs of fiscal responsibility. We can’t spend our way out of this mess, but neither can we afford to fan the flames by slashing support for the states and blocking urgently needed repair of our infrastructure.

We would all do well to take a cue from China and stock up on gold bullion.

]]>http://www.gold-bullion.org/bullion/reasons-to-buygoldbullion/#12977059003441http://www.gold-bullion.org/bullion/diversify-into-goldbullion/
Fri, 11 Feb 2011 10:35:46 -0800February 11, 2011 – If there’s a way to lose money investing in gold bullion you can bet the men and women on Main Street will find it. Why? “Humans are just so bad at assessing risk,” say Newsday columnist Daniel Akst. The reason for that is that we “rely heavily on our emotions” when making important decisions, and that makes up predisposed to mob mentality.

Wall Street is well aware of how that works. They start pumping up a bubble, which catches the attention of the investing masses. But rather than jump aboard on the upside they wait and see what everybody else they know is doing. The bubble expands, and now everybody has taken notice. Suddenly a few rush in to buy and the mob reacts in one great surge, bursting the bubble. The cycle is extremely predictable, and they are at it again.

This time Bernanke’s cronies are pumping up equities of the “riskiest, most indebted” companies with all of that stimulus loot intended to shore up the more durable aspects of the economy, according to an AP release. Since January of 2010 stocks of companies most in danger of default outperformed the S & P by nearly 40%. Stocks of companies with the highest PE ratios and those that traders consider most likely to tank both beat the S & P by more than 50%. Now it is time to harvest the crop and surprisingly it looks like there are still enough lemmings out there to let the Street cash in.

When emotions finally do turn in gold’s favor, the masses will stampede that market as well. But by then it will be too late - smart money buys on the upside and cashes in when the mob hits. Gold is notoriously underheld and has plenty of upside left; to win with gold bullion investing all you need to do is break away from the crowd.

]]>February 11, 2011 – If there’s a way to lose money investing in gold bullion you can bet the men and women on Main Street will find it. Why? “Humans are just so bad at assessing risk,” say Newsday columnist Daniel Akst. The reason for that is that we “rely heavily on our emotions” when making important decisions, and that makes up predisposed to mob mentality.

Wall Street is well aware of how that works. They start pumping up a bubble, which catches the attention of the investing masses. But rather than jump aboard on the upside they wait and see what everybody else they know is doing. The bubble expands, and now everybody has taken notice. Suddenly a few rush in to buy and the mob reacts in one great surge, bursting the bubble. The cycle is extremely predictable, and they are at it again.

This time Bernanke’s cronies are pumping up equities of the “riskiest, most indebted” companies with all of that stimulus loot intended to shore up the more durable aspects of the economy, according to an AP release. Since January of 2010 stocks of companies most in danger of default outperformed the S & P by nearly 40%. Stocks of companies with the highest PE ratios and those that traders consider most likely to tank both beat the S & P by more than 50%. Now it is time to harvest the crop and surprisingly it looks like there are still enough lemmings out there to let the Street cash in.

When emotions finally do turn in gold’s favor, the masses will stampede that market as well. But by then it will be too late - smart money buys on the upside and cashes in when the mob hits. Gold is notoriously underheld and has plenty of upside left; to win with gold bullion investing all you need to do is break away from the crowd.

]]>http://www.gold-bullion.org/bullion/diversify-into-goldbullion/#12974493463437http://www.gold-bullion.org/bullion/gold-bullion-purchasing/
Wed, 09 Feb 2011 09:06:46 -0800February 09, 2011 – The Fed is pumping up another bubble but if you have gold bullion investments you can ride it out unscathed.

This time around it’s not housing or credit or anything complicated - it’s the most basic of human needs – food. According to data from the Food and Agriculture Organization of the United Nations we are in an unprecedented period of price escalation, an increase of 87% that not coincidentally began precisely when the Fed announced its stimulus plan. Bernanke, naturally, denies that his monetary policy has played any part in the looming global crisis. Instead, he points the finger at his favorite scapegoat, the emerging Asian economies.

Lets get back to basics – supply and demand. The Fed has inflated the supply of dollars by some 1.5 trillion while global demand for food has risen only marginally. At the same time there has been no dramatic change in the growth of emerging economies. The former chair of Princeton’s economic department should draw some logical conclusion from that, but he believes that food and energy prices have nothing to do with real inflation.

I think it is highly unlikely that someone of Bernanke’s education and intelligence could actually believe the things he says, and that makes his intentions all the more sinister. Wall Street is booming thanks to him, while the average Joe struggles to put meat on the table.

The Wall Street Journal says that “in 2010, total compensation and benefits at publicly traded Wall Street banks and securities firms hit a record of $135 billion,” up 5.7% from 2009, and they attribute the stock market performance to the trillions Bernanke has pumped into the economy.

In terms of the price of gold, however, food and energy have held constant while the dollar has tanked. When such transitory wealth has evaporated, gold bullion investments will prove their worth.

]]>February 09, 2011 – The Fed is pumping up another bubble but if you have gold bullion investments you can ride it out unscathed.

This time around it’s not housing or credit or anything complicated - it’s the most basic of human needs – food. According to data from the Food and Agriculture Organization of the United Nations we are in an unprecedented period of price escalation, an increase of 87% that not coincidentally began precisely when the Fed announced its stimulus plan. Bernanke, naturally, denies that his monetary policy has played any part in the looming global crisis. Instead, he points the finger at his favorite scapegoat, the emerging Asian economies.

Lets get back to basics – supply and demand. The Fed has inflated the supply of dollars by some 1.5 trillion while global demand for food has risen only marginally. At the same time there has been no dramatic change in the growth of emerging economies. The former chair of Princeton’s economic department should draw some logical conclusion from that, but he believes that food and energy prices have nothing to do with real inflation.

I think it is highly unlikely that someone of Bernanke’s education and intelligence could actually believe the things he says, and that makes his intentions all the more sinister. Wall Street is booming thanks to him, while the average Joe struggles to put meat on the table.

The Wall Street Journal says that “in 2010, total compensation and benefits at publicly traded Wall Street banks and securities firms hit a record of $135 billion,” up 5.7% from 2009, and they attribute the stock market performance to the trillions Bernanke has pumped into the economy.

In terms of the price of gold, however, food and energy have held constant while the dollar has tanked. When such transitory wealth has evaporated, gold bullion investments will prove their worth.

]]>http://www.gold-bullion.org/bullion/gold-bullion-purchasing/#12972712063433http://www.gold-bullion.org/bullion/purchasing-gold-bullion/
Mon, 07 Feb 2011 13:10:14 -0800February 07, 2011 – Buying gold bullion is arguably the best way you can protect yourself on the rough road we will soon be forced to take.

The global economy is not going to sit back and wait for the Fed to come to its senses. Emerging economies will consume most of the $13 trillion growth in global investment over the next 20 years, says Bill Bonner in the Daily Reckoning. While our government has busied itself with duping its citizens into complacency over the past five years, those new economies have grown 85%. And every day news leaks out about a new twist in the repercussions of the government’s self-destructive policy.

“The sheer depth and duration of the U.S. job-market slump has created all sorts of unique problems for the economy,” says the Wall Street Journal. As a result businesses saw a whopping chunk of profits eaten by a 37% increase in unemployment insurance payments. In addition to automatic increases resulting from layoffs, “states are cranking up tax rates to replenish unemployment-insurance funds.” There is a lag built into the system but “the current slump has lasted so long that the tax increases are coming at a time when many businesses are still struggling to recover.”

Still, most Americans do not believe the economic situation is urgent enough to warrant making any sacrifices, an attitude that can make change only more difficult further down the road. None- the-less the time will come when we will be forced to swallow the bitter pill. Americans won’t play second fiddle for long and we have what it takes to fight our way back to the top, regardless of how bad we let things get.

Until such time we can hitch a ride on the expanding global economy while our government drives our own ever deeper into the hole. All it takes is an investment in gold bullion.

]]>February 07, 2011 – Buying gold bullion is arguably the best way you can protect yourself on the rough road we will soon be forced to take.

The global economy is not going to sit back and wait for the Fed to come to its senses. Emerging economies will consume most of the $13 trillion growth in global investment over the next 20 years, says Bill Bonner in the Daily Reckoning. While our government has busied itself with duping its citizens into complacency over the past five years, those new economies have grown 85%. And every day news leaks out about a new twist in the repercussions of the government’s self-destructive policy.

“The sheer depth and duration of the U.S. job-market slump has created all sorts of unique problems for the economy,” says the Wall Street Journal. As a result businesses saw a whopping chunk of profits eaten by a 37% increase in unemployment insurance payments. In addition to automatic increases resulting from layoffs, “states are cranking up tax rates to replenish unemployment-insurance funds.” There is a lag built into the system but “the current slump has lasted so long that the tax increases are coming at a time when many businesses are still struggling to recover.”

Still, most Americans do not believe the economic situation is urgent enough to warrant making any sacrifices, an attitude that can make change only more difficult further down the road. None- the-less the time will come when we will be forced to swallow the bitter pill. Americans won’t play second fiddle for long and we have what it takes to fight our way back to the top, regardless of how bad we let things get.

Until such time we can hitch a ride on the expanding global economy while our government drives our own ever deeper into the hole. All it takes is an investment in gold bullion.

]]>http://www.gold-bullion.org/bullion/purchasing-gold-bullion/#12971130143429http://www.gold-bullion.org/bullion/goldbullion-stock-market/
Sat, 05 Feb 2011 13:05:59 -0800February 05, 2011 – The price of gold bullion is inching back upward, treasuries are down, stocks can’t figure out where they are heading, and the dollar keeps doing its yo-yo act. Those are all signs of a market that is losing faith in the government’s fiscal policy but has yet to be convinced that gold is not an obsolete relic. It is also a sign that Americans, for the most part, still have faith in their currency and faith in the government to get us through this crisis. On both counts, that faith is misplaced.

Just look at the Fed’s sterling record of protecting the dollar since it first printed paper money 107 years ago. The paper twenty back then is worth half a buck today while the gold in the same vintage double eagle is worth over $1300. A dollar put aside after WWII is now worth 8 cents. The wealth of millions of frugal Americans has seemingly evaporated, but wealth cannot destroyed – it just goes somewhere else.

That’s what the Fed is really good at – channeling wealth from those who have worked hard to accumulate it into the pockets of those who need it least. And Bernanke is not in the slightest bit abashed to say so. To him, we all win when Wall Street wins, and he touts the current rally as proof positive that his policy is working and the economy is on the mend.

Tell that to the structurally unemployed, or those on fixed incomes, or those cast onto the street when banks foreclose on their homes. Even putting that aside, the Fed’s policy of monetization has spurred the stock market only temporarily and is obviously not sustainable.

Don’t confuse faith with wishful thinking. For over a century the Fed has proven that money is better served when invested in gold bullion than left to its stewardship.

]]>February 05, 2011 – The price of gold bullion is inching back upward, treasuries are down, stocks can’t figure out where they are heading, and the dollar keeps doing its yo-yo act. Those are all signs of a market that is losing faith in the government’s fiscal policy but has yet to be convinced that gold is not an obsolete relic. It is also a sign that Americans, for the most part, still have faith in their currency and faith in the government to get us through this crisis. On both counts, that faith is misplaced.

Just look at the Fed’s sterling record of protecting the dollar since it first printed paper money 107 years ago. The paper twenty back then is worth half a buck today while the gold in the same vintage double eagle is worth over $1300. A dollar put aside after WWII is now worth 8 cents. The wealth of millions of frugal Americans has seemingly evaporated, but wealth cannot destroyed – it just goes somewhere else.

That’s what the Fed is really good at – channeling wealth from those who have worked hard to accumulate it into the pockets of those who need it least. And Bernanke is not in the slightest bit abashed to say so. To him, we all win when Wall Street wins, and he touts the current rally as proof positive that his policy is working and the economy is on the mend.

Tell that to the structurally unemployed, or those on fixed incomes, or those cast onto the street when banks foreclose on their homes. Even putting that aside, the Fed’s policy of monetization has spurred the stock market only temporarily and is obviously not sustainable.

Don’t confuse faith with wishful thinking. For over a century the Fed has proven that money is better served when invested in gold bullion than left to its stewardship.

]]>http://www.gold-bullion.org/bullion/goldbullion-stock-market/#12969399593425http://www.gold-bullion.org/bullion/goldinvestments/
Wed, 02 Feb 2011 11:58:05 -0800February 02, 2011 – Since December stock market gurus have been trumpeting the demise of gold bullion investments. They confidently pointed to the slump in gold prices as a sure sign of a major market correction that would send gold down to a support level as low as $1000 per ounce. And once again they have egg all over their faces.

Last year was so good for gold bullion that it was natural that big investors retested the market with a significant selloff and that the gold price would consequently drop. If it had fallen below a certain support point then a correction would indeed have occurred as the selloff continued. But by all accounts, the price has bottomed out well above that level and the big boys - such as SPDR, which just added more than three metric tons to its reserves – are coming back. There was no correction because none was necessary.

Wall Street insiders go to such lengths to lure investors back into stocks because they can see the handwriting on the wall. Within the next two years, and possibly as early as Q2 2011, “there is a good chance that we’ll see stocks and bonds in a bear market simultaneously for the first time since the late 1970s,” says Jordan Roy-Byrne in Resource Investor.

Roy-Byrne believes stocks are closely following the template of a secular bear market, which is a prolonged period of large bear markets and much smaller bulls. The significant rally following a mid-point crash in 2008 is a strong indication that stocks will soon enter a cyclical bear market that will last for the next several years.

The gold bullion bears ought to put their own house in order. When stocks join bonds and real estate as undesirable assets, by default gold bullion will become the asset of choice.

]]>February 02, 2011 – Since December stock market gurus have been trumpeting the demise of gold bullion investments. They confidently pointed to the slump in gold prices as a sure sign of a major market correction that would send gold down to a support level as low as $1000 per ounce. And once again they have egg all over their faces.

Last year was so good for gold bullion that it was natural that big investors retested the market with a significant selloff and that the gold price would consequently drop. If it had fallen below a certain support point then a correction would indeed have occurred as the selloff continued. But by all accounts, the price has bottomed out well above that level and the big boys - such as SPDR, which just added more than three metric tons to its reserves – are coming back. There was no correction because none was necessary.

Wall Street insiders go to such lengths to lure investors back into stocks because they can see the handwriting on the wall. Within the next two years, and possibly as early as Q2 2011, “there is a good chance that we’ll see stocks and bonds in a bear market simultaneously for the first time since the late 1970s,” says Jordan Roy-Byrne in Resource Investor.

Roy-Byrne believes stocks are closely following the template of a secular bear market, which is a prolonged period of large bear markets and much smaller bulls. The significant rally following a mid-point crash in 2008 is a strong indication that stocks will soon enter a cyclical bear market that will last for the next several years.

The gold bullion bears ought to put their own house in order. When stocks join bonds and real estate as undesirable assets, by default gold bullion will become the asset of choice.

]]>http://www.gold-bullion.org/bullion/goldinvestments/#12966766853421http://www.gold-bullion.org/bullion/safehaven-gold-bullion/
Mon, 31 Jan 2011 11:49:24 -0800January 31, 2011 – Investors are seeking safe haven in gold bullion for all kinds of reasons – the sovereign debt crisis, unrest in the middle east, runaway inflation in emerging economies – but little is being said about loss of our nation’s creditworthiness. A single downgrade could spell disaster for our already precarious economy, signaling a loss in the faith that is the sole backing for the dollar. And according to Bloomberg columnist Kevin Hassett, director of economic- policy studies at the American Enterprise Institute, the “rating of U.S. long-term debt should be downgraded -- today.”

Hassett contends that left unchecked our debt will reach 135.4% of GDP in just six years, which is the point where Japan received its first downgrade. President Barack Obama’s State of the Union address clearly showed no regard for the urgency of reducing the deficit, which by all accounts should warrant a lower credit rating. But remember that Moody’s and Standard and Poor both failed to downgrade the Wall Street real estate junk that brought about the financial crisis.

That sort of favoritism cost investors their life savings and the price tag for doing it again with our national rating is unfathomable. However, the rest of the world isn’t stupid. We scoffed at China when their rating agency downgraded us last fall, but although the other western powers appeared to follow suit I doubt the message was lost. Time and again we have been warned by the likes of Brazil that we must back away from our fiscally irresponsible policies, but we stubbornly cling to a false sense of superiority that has no foundation in the new era of global economics.

Fiat money is rapidly falling by the wayside in favor of gold. Gold bullion investment is the best way we can protect ourselves from our government’s declining creditworthiness.

]]>January 31, 2011 – Investors are seeking safe haven in gold bullion for all kinds of reasons – the sovereign debt crisis, unrest in the middle east, runaway inflation in emerging economies – but little is being said about loss of our nation’s creditworthiness. A single downgrade could spell disaster for our already precarious economy, signaling a loss in the faith that is the sole backing for the dollar. And according to Bloomberg columnist Kevin Hassett, director of economic- policy studies at the American Enterprise Institute, the “rating of U.S. long-term debt should be downgraded -- today.”

Hassett contends that left unchecked our debt will reach 135.4% of GDP in just six years, which is the point where Japan received its first downgrade. President Barack Obama’s State of the Union address clearly showed no regard for the urgency of reducing the deficit, which by all accounts should warrant a lower credit rating. But remember that Moody’s and Standard and Poor both failed to downgrade the Wall Street real estate junk that brought about the financial crisis.

That sort of favoritism cost investors their life savings and the price tag for doing it again with our national rating is unfathomable. However, the rest of the world isn’t stupid. We scoffed at China when their rating agency downgraded us last fall, but although the other western powers appeared to follow suit I doubt the message was lost. Time and again we have been warned by the likes of Brazil that we must back away from our fiscally irresponsible policies, but we stubbornly cling to a false sense of superiority that has no foundation in the new era of global economics.

Fiat money is rapidly falling by the wayside in favor of gold. Gold bullion investment is the best way we can protect ourselves from our government’s declining creditworthiness.

]]>http://www.gold-bullion.org/bullion/safehaven-gold-bullion/#12965033643417http://www.gold-bullion.org/bullion/purchase-gold-bullion/
Fri, 28 Jan 2011 12:30:21 -0800January 28, 2011 - There’s plenty of bull left in gold bullion because there’s plenty of ‘bull’ in the government’s fiscal policy. The housing market is entering its second dip, more states are losing jobs than are gaining, and durable goods orders are on the decline. On top of it all, by even the most optimistic predictions the deficit will be nearly double the growth in GDP this year.

Despite that, many investors still believe that the recovery is just moving a little slower than was hoped. Wake up already! Current policy is bucking the currents of change, doggedly trying to rebuild an unsustainable economy by reviving “the industries that need to be cut down to size – finance and housing”.

That’s the perspective of Bill Bonner, founder of the Daily Reckoning. Bonner argues that we have not been going through a recession at all but rather a “Great Correction.”

Recessions are a normal condition in the cycle of healthy economies, but corrections occur when the economy is completely out of whack with current conditions. “Recovery” in a correction can only return the economy to that undesirable state when what is really needed is “a change of direction...an adjustment to new circumstances.”

We leveraged our future on credit as we bought into the fallacy of service sector jobs replacing those lost in manufacturing. Our faith was bolstered by the housing bubble, which helped conceal the crisis brewing in the job market.

That system had to collapse because it had nothing to do with real conditions. While the government persists in its doomed policies Americans must “make the sort of changes that they need to make – in their personal finances and in their investments.”

That begins with stronger positions in gold bullion, which will keep the bull market running. And at current gold bullion prices there could be no better time than now to get started.

]]>January 28, 2011 - There’s plenty of bull left in gold bullion because there’s plenty of ‘bull’ in the government’s fiscal policy. The housing market is entering its second dip, more states are losing jobs than are gaining, and durable goods orders are on the decline. On top of it all, by even the most optimistic predictions the deficit will be nearly double the growth in GDP this year.

Despite that, many investors still believe that the recovery is just moving a little slower than was hoped. Wake up already! Current policy is bucking the currents of change, doggedly trying to rebuild an unsustainable economy by reviving “the industries that need to be cut down to size – finance and housing”.

That’s the perspective of Bill Bonner, founder of the Daily Reckoning. Bonner argues that we have not been going through a recession at all but rather a “Great Correction.”

Recessions are a normal condition in the cycle of healthy economies, but corrections occur when the economy is completely out of whack with current conditions. “Recovery” in a correction can only return the economy to that undesirable state when what is really needed is “a change of direction...an adjustment to new circumstances.”

We leveraged our future on credit as we bought into the fallacy of service sector jobs replacing those lost in manufacturing. Our faith was bolstered by the housing bubble, which helped conceal the crisis brewing in the job market.

That system had to collapse because it had nothing to do with real conditions. While the government persists in its doomed policies Americans must “make the sort of changes that they need to make – in their personal finances and in their investments.”

That begins with stronger positions in gold bullion, which will keep the bull market running. And at current gold bullion prices there could be no better time than now to get started.

]]>http://www.gold-bullion.org/bullion/purchase-gold-bullion/#12962466213413http://www.gold-bullion.org/bullion/buying-gold-bullion/
Wed, 26 Jan 2011 14:41:15 -0800January 26, 2011 – From what I heard President Obama and Rep. Paul Ryan say last night buying gold bullion is the smartest move we can make this year. All we got were lofty goals that will take decades to reach when what we need is a lifeline thrown to us right now before we go over the falls.

If Obama has his way we will see more of the same recovery policy that has worked so well so far. With interest rates kept ridiculously low we can expect more and more Americas will get suckered back into the stock market and more of our purchasing power to be eroded. In an effort to boost exports the dollar will continue declining. And growth will remain elusive.

If Ryan has his way, we will see ill-conceived spending cuts and more of the “trickle down” tactics that help get us into this mess. I agree whole-heartedly that we have way too much government, but Rome wasn’t built in a day and neither can Washington be taken apart in a day.

Of course, what we will probably get is another stalemate. I don’t expect any real change when it comes to the parties pushing their agendas. No matter how you dress them up they are still politicians who have their own best interests in mind.

If they really want to address the problems I suggest they start with the States that are ready to implode. And start giving us the whole truth for once. If we know the real nature of a situation and the threat it poses to our way of life, and if we can believe in our leaders, then you can bet Americans will rally around the cause and do what it takes to come out winners.

For now we are left to fend for ourselves, and the best way to start is with gold bullion investment.

]]>January 26, 2011 – From what I heard President Obama and Rep. Paul Ryan say last night buying gold bullion is the smartest move we can make this year. All we got were lofty goals that will take decades to reach when what we need is a lifeline thrown to us right now before we go over the falls.

If Obama has his way we will see more of the same recovery policy that has worked so well so far. With interest rates kept ridiculously low we can expect more and more Americas will get suckered back into the stock market and more of our purchasing power to be eroded. In an effort to boost exports the dollar will continue declining. And growth will remain elusive.

If Ryan has his way, we will see ill-conceived spending cuts and more of the “trickle down” tactics that help get us into this mess. I agree whole-heartedly that we have way too much government, but Rome wasn’t built in a day and neither can Washington be taken apart in a day.

Of course, what we will probably get is another stalemate. I don’t expect any real change when it comes to the parties pushing their agendas. No matter how you dress them up they are still politicians who have their own best interests in mind.

If they really want to address the problems I suggest they start with the States that are ready to implode. And start giving us the whole truth for once. If we know the real nature of a situation and the threat it poses to our way of life, and if we can believe in our leaders, then you can bet Americans will rally around the cause and do what it takes to come out winners.

For now we are left to fend for ourselves, and the best way to start is with gold bullion investment.

]]>http://www.gold-bullion.org/bullion/buying-gold-bullion/#12960816753409http://www.gold-bullion.org/bullion/fromwallstreet-to-goldbullion/
Mon, 24 Jan 2011 11:41:56 -0800January 24, 2011 – Individual investors are wising up to Wall Street and switching their money from the rigged game over to gold bullion. The professional traders who have “loaded up on U.S. equities with cheap cash pumped into the economy by the Federal Reserve” are having a hard time finding pigeons to dump their overvalued stocks on, says The Wall Street Journal’s Jason Zweig. “Perhaps the so-called smart money shouldn't be too smug in assuming that small investors are ready to play the patsy again anytime soon.”

That would explain all the fanfare over the “great news” that in the second week of 2011 individuals poured a whopping $3.8 billion into mutual funds. Sounds impressive, doesn’t it? Actually that’s only 55% of the amount for the same period in the last two years and it represents a mere 0.09% of the funds’ total assets. Furthermore, January typically accounts for 72% of the year’s total investments and that $3.8 billion replaces only 11% of what was pulled out of the market last year.

That puts the professional traders in quite a pickle. After driving the market up nearly 100% all signs are that it is critically overheating and the smart money is still holding the bag. “It could be a long slog, again, before today's small investors forgive the market for the pain it inflicted on them,” says Zweig.

That hasn’t stopped the government from trying, however. Hardly a day goes by that Washington doesn’t try to hornswoggle us back into equities. Apparently they don’t believe the folks they’re in cahoots with have enough of our money yet. If we don’t buy from the trader pros, then who will? “That question should worry bulls and bears alike.”

Too bad – we just don’t care. There’s a far better place to put our money where the game isn’t rigged – gold bullion.

]]>January 24, 2011 – Individual investors are wising up to Wall Street and switching their money from the rigged game over to gold bullion. The professional traders who have “loaded up on U.S. equities with cheap cash pumped into the economy by the Federal Reserve” are having a hard time finding pigeons to dump their overvalued stocks on, says The Wall Street Journal’s Jason Zweig. “Perhaps the so-called smart money shouldn't be too smug in assuming that small investors are ready to play the patsy again anytime soon.”

That would explain all the fanfare over the “great news” that in the second week of 2011 individuals poured a whopping $3.8 billion into mutual funds. Sounds impressive, doesn’t it? Actually that’s only 55% of the amount for the same period in the last two years and it represents a mere 0.09% of the funds’ total assets. Furthermore, January typically accounts for 72% of the year’s total investments and that $3.8 billion replaces only 11% of what was pulled out of the market last year.

That puts the professional traders in quite a pickle. After driving the market up nearly 100% all signs are that it is critically overheating and the smart money is still holding the bag. “It could be a long slog, again, before today's small investors forgive the market for the pain it inflicted on them,” says Zweig.

That hasn’t stopped the government from trying, however. Hardly a day goes by that Washington doesn’t try to hornswoggle us back into equities. Apparently they don’t believe the folks they’re in cahoots with have enough of our money yet. If we don’t buy from the trader pros, then who will? “That question should worry bulls and bears alike.”

Too bad – we just don’t care. There’s a far better place to put our money where the game isn’t rigged – gold bullion.

]]>http://www.gold-bullion.org/bullion/fromwallstreet-to-goldbullion/#12958981163405http://www.gold-bullion.org/bullion/american-gold-bullion/
Fri, 21 Jan 2011 11:36:31 -0800January 21, 2011 – Anybody who takes a dispassionate look at the state of our union will realize the urgency of taking a strong investment position in gold bullion. And while short positions continue to rule the market, opportunity abounds for buying bullion at bargain prices.

That a mere 4.5% of global economic wealth is in gold bullion is a stunning testament to investors’ refusal to accept the cold hard fact that fiat money based wealth is in immediate jeopardy. No amount of stimulus and no degree of austerity is likely to avert collapse of the dollar and the period of hyperinflation that will follow. The reason for that is simple – all but 17% of the money that our states take in is contractually committed, and that 17% does not come close to what it would take to get them out of the red.

New Jersey governor Chris Christie laid off 1,300 state workers, eliminated thousands of teachers’ jobs, and drastically reduced state funding for cities, counties, and villages – but even with the budget slashed by 26% New Jersey still faces a $10 billion deficit. The effect on local governments has been quick and severe. Newark reduced its police force by 16% last year and now Camden has been forced to lay off nearly half of its police officers, one third of its firefighters, and 100 other municipal workers.

The municipal bond market is bound to collapse as more and more local governments default, making it impossible for even economically healthy cities and counties to raise capital. It is not a pretty picture, but it is real.

It is extremely doubtful that we can fix the problem under the current system, but we can let it fall apart and then rebuild it from scratch without all of the union mandated bloat and waste. But that will require vast wealth that had been preserved in gold bullion.

]]>January 21, 2011 – Anybody who takes a dispassionate look at the state of our union will realize the urgency of taking a strong investment position in gold bullion. And while short positions continue to rule the market, opportunity abounds for buying bullion at bargain prices.

That a mere 4.5% of global economic wealth is in gold bullion is a stunning testament to investors’ refusal to accept the cold hard fact that fiat money based wealth is in immediate jeopardy. No amount of stimulus and no degree of austerity is likely to avert collapse of the dollar and the period of hyperinflation that will follow. The reason for that is simple – all but 17% of the money that our states take in is contractually committed, and that 17% does not come close to what it would take to get them out of the red.

New Jersey governor Chris Christie laid off 1,300 state workers, eliminated thousands of teachers’ jobs, and drastically reduced state funding for cities, counties, and villages – but even with the budget slashed by 26% New Jersey still faces a $10 billion deficit. The effect on local governments has been quick and severe. Newark reduced its police force by 16% last year and now Camden has been forced to lay off nearly half of its police officers, one third of its firefighters, and 100 other municipal workers.

The municipal bond market is bound to collapse as more and more local governments default, making it impossible for even economically healthy cities and counties to raise capital. It is not a pretty picture, but it is real.

It is extremely doubtful that we can fix the problem under the current system, but we can let it fall apart and then rebuild it from scratch without all of the union mandated bloat and waste. But that will require vast wealth that had been preserved in gold bullion.

]]>http://www.gold-bullion.org/bullion/american-gold-bullion/#12956385913401http://www.gold-bullion.org/bullion/gold-bullion-market-performance/
Wed, 19 Jan 2011 12:36:51 -0800January 19, 2011 – Gold bullion has had a bumpy ride so far this year as Wall Street pitchmen trumpet fortunes are to be made in the booming stock market. But hold on, Nellie. We would all do well to heed the advice of Brett Arends, writing for the Wall Street Journal: “Time to take a deep breath. Stay focused. And remind yourself, once again, to stick to your long-term investment discipline.”

The worst possible time to rush into stocks is when the market booms, just as the worst time to sell is when it is going bust. Following that strategy for the past 20 years would have produced an inflation adjusted annual loss of 8.5%.

Arends suggests that we take a closer look at Wall Street’s “sale.” Consider the pitchmen – they are the same ones who sold us Arizona beachfront property in 1999 and 2007. And consider the pitch – quarterly earnings are way up, so stock values must follow. But all of the profits for 10 years would still account for less than 25% of the market value.

On the other hand, Dave Kansas in SmartMoney.com gives us “5 Reasons to Still Like Gold.” His reasons aren’t new, they just underscore that nothing has happened to warrant gold being less attractive.

First and foremost is the threat of inflation, which hasn’t gone away. The Fed and the European Central Bank have both “maintained an array of extraordinary programs” that depend on inflation to move their economies forward. And while western governments vie to gain trade and debt advantages through currency devaluation eastern central banks are beefing up their gold reserves to maintain stability in the global monetary system.

“Stock-market fever is one of your biggest enemies as an investor,” Arends says. Unless, of course, you buy gold bullion when stock-market fever is holding prices down.

]]>January 19, 2011 – Gold bullion has had a bumpy ride so far this year as Wall Street pitchmen trumpet fortunes are to be made in the booming stock market. But hold on, Nellie. We would all do well to heed the advice of Brett Arends, writing for the Wall Street Journal: “Time to take a deep breath. Stay focused. And remind yourself, once again, to stick to your long-term investment discipline.”

The worst possible time to rush into stocks is when the market booms, just as the worst time to sell is when it is going bust. Following that strategy for the past 20 years would have produced an inflation adjusted annual loss of 8.5%.

Arends suggests that we take a closer look at Wall Street’s “sale.” Consider the pitchmen – they are the same ones who sold us Arizona beachfront property in 1999 and 2007. And consider the pitch – quarterly earnings are way up, so stock values must follow. But all of the profits for 10 years would still account for less than 25% of the market value.

On the other hand, Dave Kansas in SmartMoney.com gives us “5 Reasons to Still Like Gold.” His reasons aren’t new, they just underscore that nothing has happened to warrant gold being less attractive.

First and foremost is the threat of inflation, which hasn’t gone away. The Fed and the European Central Bank have both “maintained an array of extraordinary programs” that depend on inflation to move their economies forward. And while western governments vie to gain trade and debt advantages through currency devaluation eastern central banks are beefing up their gold reserves to maintain stability in the global monetary system.

“Stock-market fever is one of your biggest enemies as an investor,” Arends says. Unless, of course, you buy gold bullion when stock-market fever is holding prices down.

]]>http://www.gold-bullion.org/bullion/gold-bullion-market-performance/#12954694113397http://www.gold-bullion.org/bullion/inflation-goldbullion-investment/
Mon, 17 Jan 2011 10:30:45 -0800January 17, 2011 – Gold bullion is filling safe deposit boxes across Europe as the sovereign debt crisis is showing no signs of reversal. We all should pay attention to that because our turn is coming.

With all of the attention on Europe the dollar has been holding on fairly well, but it can’t survive on former glory forever. In fact it is astonishing that “Western credit ratings agencies . . . [slapped] their good housekeeping AAA seal on some of the most toxic bond sludge Wall Street could concoct,” said Matt Phillips in the Wall Street Journal’s MarketBeat. "The view of markets is that the U.S. will continue to benefit from the exorbitant privilege linked to the U.S. dollar. But that may change," says Carol Sirou, head of Standard & Poor's France, in the Wall Street Journal.

It already has changed, right after QE2 was announced when China’s first domestic credit rating agency, Dagong Global Credit Rating Co. downgraded its US rating from AA to A+, citing “serious defects in the U.S. economy [that] will . . . fundamentally lower the national solvency.” Because China is the largest holder of US foreign debt we shouldn’t take that lightly, but the markets completely discounted the report.

Perhaps they will sit up and take notice when S & P and Moody’s lower our rating. That could happen sooner than one might think. According to a senior analyst at Moody's, “the likelihood of a negative outlook over the next two years will increase." Both firms have repeatedly warned that the government must reverse debt expansion to avoid downgrade, but amazingly the Washington steamroller rumbles on. When our ratings drop, interest on our debt will rise and inflation will be certain to follow. That’s just plain reality, as is gold bullion’s ability to protect you from it.

]]>January 17, 2011 – Gold bullion is filling safe deposit boxes across Europe as the sovereign debt crisis is showing no signs of reversal. We all should pay attention to that because our turn is coming.

With all of the attention on Europe the dollar has been holding on fairly well, but it can’t survive on former glory forever. In fact it is astonishing that “Western credit ratings agencies . . . [slapped] their good housekeeping AAA seal on some of the most toxic bond sludge Wall Street could concoct,” said Matt Phillips in the Wall Street Journal’s MarketBeat. "The view of markets is that the U.S. will continue to benefit from the exorbitant privilege linked to the U.S. dollar. But that may change," says Carol Sirou, head of Standard & Poor's France, in the Wall Street Journal.

It already has changed, right after QE2 was announced when China’s first domestic credit rating agency, Dagong Global Credit Rating Co. downgraded its US rating from AA to A+, citing “serious defects in the U.S. economy [that] will . . . fundamentally lower the national solvency.” Because China is the largest holder of US foreign debt we shouldn’t take that lightly, but the markets completely discounted the report.

Perhaps they will sit up and take notice when S & P and Moody’s lower our rating. That could happen sooner than one might think. According to a senior analyst at Moody's, “the likelihood of a negative outlook over the next two years will increase." Both firms have repeatedly warned that the government must reverse debt expansion to avoid downgrade, but amazingly the Washington steamroller rumbles on. When our ratings drop, interest on our debt will rise and inflation will be certain to follow. That’s just plain reality, as is gold bullion’s ability to protect you from it.

]]>http://www.gold-bullion.org/bullion/inflation-goldbullion-investment/#12952890453393http://www.gold-bullion.org/bullion/goldbullionmarket/
Thu, 13 Jan 2011 10:03:26 -0800January 13, 2011 – The gold bullion market is one of the last bastions of equal opportunity investment. There was a time when the stock market was open to everyone, when the individual had the same access to information and the same opportunity to participate in initial public offerings (IPO) as the biggest traders. But government regulation has seen to it that the IPO market, where the real money is made, is now the exclusive province of Wall Street’s elite.

In the Wall Street Journal, Europe, L. Gordon Crovitz states that “Facebook should be a wake- up call about how regulations have undermined public markets.” Rather than give individual investors a chance at their IPO, Facebook sold the entire $500 million offering to Goldman Sachs as private equity. And their reason is clear.

Public uproar over debacles the likes of Enron and WorldCom led to the passage of the Sarbanes-Oxley Act in 2002, a massively complex set of regulations whose stated aim was corporate and auditing reform in the name of investor protection. What it did, however, was make the IPO undesirable as a means of raising capital for new ventures. Private equity, which is free from Sarbanes-Oxley regulation, is a far more favorable option.

Private equity offerings not only shut out individual investors, they also close off the free flow of information required by public exchange, opening the door to misinformation and creating an ideal climate for bubbles to form.

Crovitz says that “the goal of securities regulation should simply be to ensure that accurate information gets to the market as quickly as possible . . . The would-be investing public should defriend the politicians who took away their markets.”

We should also “defriend” Wall Street and put our money into gold bullion where they can’t get their grubby mitts on it.

]]>January 13, 2011 – The gold bullion market is one of the last bastions of equal opportunity investment. There was a time when the stock market was open to everyone, when the individual had the same access to information and the same opportunity to participate in initial public offerings (IPO) as the biggest traders. But government regulation has seen to it that the IPO market, where the real money is made, is now the exclusive province of Wall Street’s elite.

In the Wall Street Journal, Europe, L. Gordon Crovitz states that “Facebook should be a wake- up call about how regulations have undermined public markets.” Rather than give individual investors a chance at their IPO, Facebook sold the entire $500 million offering to Goldman Sachs as private equity. And their reason is clear.

Public uproar over debacles the likes of Enron and WorldCom led to the passage of the Sarbanes-Oxley Act in 2002, a massively complex set of regulations whose stated aim was corporate and auditing reform in the name of investor protection. What it did, however, was make the IPO undesirable as a means of raising capital for new ventures. Private equity, which is free from Sarbanes-Oxley regulation, is a far more favorable option.

Private equity offerings not only shut out individual investors, they also close off the free flow of information required by public exchange, opening the door to misinformation and creating an ideal climate for bubbles to form.

Crovitz says that “the goal of securities regulation should simply be to ensure that accurate information gets to the market as quickly as possible . . . The would-be investing public should defriend the politicians who took away their markets.”

We should also “defriend” Wall Street and put our money into gold bullion where they can’t get their grubby mitts on it.

]]>http://www.gold-bullion.org/bullion/goldbullionmarket/#12949418063389http://www.gold-bullion.org/bullion/bullion-gold-investing/
Mon, 10 Jan 2011 13:23:52 -0800January 10, 2011 – If you are young, gold bullion investing offers your best shot at having a long and healthy retirement. Those over the age of 65 are already being quietly squeezed by the government while it continues to underwrite Wall Street’s excesses. And 78 million baby boomers are standing at the door with their hands out.

Baby boomers were lulled into a false sense of security by a government that for 30 years has used statistical gimmicks to cover up fiscal irresponsibility and obscure the true state of the economy. Its dogged insistence on holding down interest rates pumped billions into the coffers of the ultra wealthy at the expense of the nations elderly and those now reaching retirement age. According www.Shadowstats.com the prices for the most necessary products purchased by people over 65 has doubled since 2000, while Social Security payments rose only 27%. Nearly half of that population is living on 40% less than the national median income.

The housing bubble, which was a direct result of government fiscal policy, hit baby boomers particularly hard because much of their wealth is tied up in their homes. Not only are a great many of them depending of Social Security and Medicare to get them through retirement, vast numbers have been forced into the system early by the unemployment crisis.

Medicare is in even deeper trouble than Social Security, currently underfunded by $34 trillion according to Fortune Magazine’s Geoff Colvin. Far longer life expectancy and skyrocketing medical expenses have made the current program unsustainable, and unless Washington takes drastic and immediate action – extremely unlikely from that bunch – that vital safety net will collapse.

The good news is that neither the government nor Wall Street can fudge the value of gold. Whatever becomes of the entitlement programs, gold bullion investment can give you real social security.

]]>January 10, 2011 – If you are young, gold bullion investing offers your best shot at having a long and healthy retirement. Those over the age of 65 are already being quietly squeezed by the government while it continues to underwrite Wall Street’s excesses. And 78 million baby boomers are standing at the door with their hands out.

Baby boomers were lulled into a false sense of security by a government that for 30 years has used statistical gimmicks to cover up fiscal irresponsibility and obscure the true state of the economy. Its dogged insistence on holding down interest rates pumped billions into the coffers of the ultra wealthy at the expense of the nations elderly and those now reaching retirement age. According www.Shadowstats.com the prices for the most necessary products purchased by people over 65 has doubled since 2000, while Social Security payments rose only 27%. Nearly half of that population is living on 40% less than the national median income.

The housing bubble, which was a direct result of government fiscal policy, hit baby boomers particularly hard because much of their wealth is tied up in their homes. Not only are a great many of them depending of Social Security and Medicare to get them through retirement, vast numbers have been forced into the system early by the unemployment crisis.

Medicare is in even deeper trouble than Social Security, currently underfunded by $34 trillion according to Fortune Magazine’s Geoff Colvin. Far longer life expectancy and skyrocketing medical expenses have made the current program unsustainable, and unless Washington takes drastic and immediate action – extremely unlikely from that bunch – that vital safety net will collapse.

The good news is that neither the government nor Wall Street can fudge the value of gold. Whatever becomes of the entitlement programs, gold bullion investment can give you real social security.

]]>http://www.gold-bullion.org/bullion/bullion-gold-investing/#12946946323385http://www.gold-bullion.org/bullion/stockmarket-goldbullion/
Thu, 06 Jan 2011 12:54:33 -0800January 06, 2011 – The year is off with a bang, hammering us with hype that things are better and the time has come to cash in our gold bullion and get back to the stock market. Perhaps if we hadn’t heard the same song sung all last year as gold kept climbing we would be more inclined to listen.

Have we balanced the budget and wiped out the debt? Did the European sovereign debt crisis bow out with 2010? Did the Fed vacuum up all the excess cash it printed? And what about unemployment?

Aha! We have you there, the government says, pointing to the latest figures (forget that it was more like two steps forward and one step back.) Even in the best light the news is a non-issue. Sure jobs are going to be created here and there each baby step the economy takes forward, and sure the government can use that to make it look like the unemployment situation is improving. But like Evan Esar said, statistics is “the science of producing unreliable facts from reliable figures.”

We need only look about us to see the real state of unemployment. Absent from the data are scores of new homeless people driven to poverty by failed fiscal policy. Many times more have been driven to the edge, frustrated with being unable to find work or having to work multiple jobs just to stay afloat. The prolonged lack of income has wreaked havoc on the credit ratings of countless honorable people and rendered them virtually unemployable. This is the real problem and it will continue to cripple our economy for as long as it persists.

Until the government stops sweeping its problems under a carpet of statistics nothing is going to get better. Except, of course, gold bullion investments.

]]>January 06, 2011 – The year is off with a bang, hammering us with hype that things are better and the time has come to cash in our gold bullion and get back to the stock market. Perhaps if we hadn’t heard the same song sung all last year as gold kept climbing we would be more inclined to listen.

Have we balanced the budget and wiped out the debt? Did the European sovereign debt crisis bow out with 2010? Did the Fed vacuum up all the excess cash it printed? And what about unemployment?

Aha! We have you there, the government says, pointing to the latest figures (forget that it was more like two steps forward and one step back.) Even in the best light the news is a non-issue. Sure jobs are going to be created here and there each baby step the economy takes forward, and sure the government can use that to make it look like the unemployment situation is improving. But like Evan Esar said, statistics is “the science of producing unreliable facts from reliable figures.”

We need only look about us to see the real state of unemployment. Absent from the data are scores of new homeless people driven to poverty by failed fiscal policy. Many times more have been driven to the edge, frustrated with being unable to find work or having to work multiple jobs just to stay afloat. The prolonged lack of income has wreaked havoc on the credit ratings of countless honorable people and rendered them virtually unemployable. This is the real problem and it will continue to cripple our economy for as long as it persists.

Until the government stops sweeping its problems under a carpet of statistics nothing is going to get better. Except, of course, gold bullion investments.

]]>http://www.gold-bullion.org/bullion/stockmarket-goldbullion/#12943472733381http://www.gold-bullion.org/bullion/buy-gold-bullion/
Tue, 04 Jan 2011 11:51:21 -0800January 04, 2011 – Wall Street likes to brand those who promote gold bullion investing with gloom and doom scenarios as lunatics driven by irrational paranoia. But Wall Street and its co- conspirator, the US government, have been deluding us for so long that maybe only a cataclysm will bring us back to our senses.

Decades of fiscal irresponsibility have hit our infrastructure, and in particular the power grid, especially hard. Antiquated equipment that has served well beyond its intended life is still holding much of the grid together, but the price tag for repairs is a prohibitive $1.75 trillion. Barring any catastrophic event the grid will continue its gradual decline until local failures eventually add up to total collapse. But a catastrophic event could bring it down all at once, and there is a distinct possibility that could happen as early as this year.

Imagine life without electricity. After only three days emergency generators would shut down crippling vital life-saving services. Water would no longer flow from our taps. Furnaces and air conditioners would not function. Food would rot in refrigerators and freezers while packaging plants stand idle. Across the country all production would come to a standstill and income would disappear. The possibility of that happening is not remote and it could take years before life gets restored to normal.

Solar Mass Expulsion (SME) poses the single greatest threat to power transmission, and the likelihood of that happening here goes up significantly as a new cycle of solar activity starts this year. If it does there will be little warning and there are no emergency plans to minimize the destruction.

The government can’t deal with the problem so it buried it. That is the lunacy. Investing in gold bullion to carry us through such a calamity is simple common sense.

]]>January 04, 2011 – Wall Street likes to brand those who promote gold bullion investing with gloom and doom scenarios as lunatics driven by irrational paranoia. But Wall Street and its co- conspirator, the US government, have been deluding us for so long that maybe only a cataclysm will bring us back to our senses.

Decades of fiscal irresponsibility have hit our infrastructure, and in particular the power grid, especially hard. Antiquated equipment that has served well beyond its intended life is still holding much of the grid together, but the price tag for repairs is a prohibitive $1.75 trillion. Barring any catastrophic event the grid will continue its gradual decline until local failures eventually add up to total collapse. But a catastrophic event could bring it down all at once, and there is a distinct possibility that could happen as early as this year.

Imagine life without electricity. After only three days emergency generators would shut down crippling vital life-saving services. Water would no longer flow from our taps. Furnaces and air conditioners would not function. Food would rot in refrigerators and freezers while packaging plants stand idle. Across the country all production would come to a standstill and income would disappear. The possibility of that happening is not remote and it could take years before life gets restored to normal.

Solar Mass Expulsion (SME) poses the single greatest threat to power transmission, and the likelihood of that happening here goes up significantly as a new cycle of solar activity starts this year. If it does there will be little warning and there are no emergency plans to minimize the destruction.

The government can’t deal with the problem so it buried it. That is the lunacy. Investing in gold bullion to carry us through such a calamity is simple common sense.

]]>http://www.gold-bullion.org/bullion/buy-gold-bullion/#12941706813377http://www.gold-bullion.org/bullion/gold-bullion-opportunities/
Mon, 03 Jan 2011 11:47:23 -0800January 3, 2011 – Even with storm warnings all unfurled Wall Street moguls continue to hold comparatively weak positions in gold bullion. They are not naïve, so do they truly believe that they are too big to fail? In a word, yes, or more precisely, the US, which continues to subsidize their excesses, is too big to fail.

With a direct pipeline from taxpayers’ pockets to corporate coffers, the wealth of the top 1% continues to balloon while the average American’s net worth shrinks to nothing. But there is a limit, and we have reached it. As Wall Street’s shenanigans are being exposed on the internet as never before, more and more Americans are seeing the light and refusing to be drawn into the stock market ripoff.

Americans deeply believe in the freedom to acquire all of the wealth our wit and resources allow, but we have an equally strong sense of fairness. Something is very wrong when our states have to let teachers go for lack of funds while the firms that got us into this mess in the first place hand out $90 billion in bonuses to their already overcompensated employees.

As American families watch their life savings evaporate just to stay afloat, it is hard to swallow an economic policy whose purpose, as stated on www.mybudget360.com, is "To aggregate as much wealth into the banking system while eliminating the American middle class by a slow systematic dilution of their currency and financial well being and standard of living."

When the Wall Street house of cards finally comes down the fat cats will rush to gold to preserve their ill gotten gains. Those who had the foresight to be strongly positioned in gold bullion will at last have their revenge.

]]>January 3, 2011 – Even with storm warnings all unfurled Wall Street moguls continue to hold comparatively weak positions in gold bullion. They are not naïve, so do they truly believe that they are too big to fail? In a word, yes, or more precisely, the US, which continues to subsidize their excesses, is too big to fail.

With a direct pipeline from taxpayers’ pockets to corporate coffers, the wealth of the top 1% continues to balloon while the average American’s net worth shrinks to nothing. But there is a limit, and we have reached it. As Wall Street’s shenanigans are being exposed on the internet as never before, more and more Americans are seeing the light and refusing to be drawn into the stock market ripoff.

Americans deeply believe in the freedom to acquire all of the wealth our wit and resources allow, but we have an equally strong sense of fairness. Something is very wrong when our states have to let teachers go for lack of funds while the firms that got us into this mess in the first place hand out $90 billion in bonuses to their already overcompensated employees.

As American families watch their life savings evaporate just to stay afloat, it is hard to swallow an economic policy whose purpose, as stated on www.mybudget360.com, is "To aggregate as much wealth into the banking system while eliminating the American middle class by a slow systematic dilution of their currency and financial well being and standard of living."

When the Wall Street house of cards finally comes down the fat cats will rush to gold to preserve their ill gotten gains. Those who had the foresight to be strongly positioned in gold bullion will at last have their revenge.

]]>http://www.gold-bullion.org/bullion/gold-bullion-opportunities/#12940840433373http://www.gold-bullion.org/bullion/gold-investment-interest/
Wed, 29 Dec 2010 14:16:50 -0800December 29, 2010 – One widely accepted belief about gold bullion investments is that they cannot produce income and therefore are appropriate only when interest rates are very low. Disregarding the argument’s failure to consider gold’s potential for long term wealth creation, it also ignores a straightforward way to realize income from physically held gold.

The idea is really quite simple: whenever the value of gold bullion is rising faster than inflation, as it has done by a wide margin for more than a decade, a portion of the investment can be periodically withdrawn and sold without diminishing the value of holdings. For example, in 2009 about 3 1/2 ounces of gold had the same value as 10 ounces in 2000 so over that time 6 1/2 ounces could have been sold without diminishing the original investment adjusted for inflation.

There is another advantage to income generated from partial liquidation of gold holdings – it is to be taxed as capital gains and not income, which for most investors is a significant savings. Furthermore, under current law most transactions are not even reportable leaving the issues entirely up to the investor’s conscience.

When you have enough of gold you can also lease it out at interest. The problem with that, as with all other interest bearing investments, is that you hand your money over to another party based solely on a promise that it will be repaid in full plus a fee for its use. That is true even for bank savings accounts, where your money is loaned out to generate income. Somebody else has your money and they alone control how it will be used. And if they go belly up, you lose.

Although the primary strength of gold bullion investments is long term wealth protection, they can also provide a favorable source of income should the need arise.

]]>December 29, 2010 – One widely accepted belief about gold bullion investments is that they cannot produce income and therefore are appropriate only when interest rates are very low. Disregarding the argument’s failure to consider gold’s potential for long term wealth creation, it also ignores a straightforward way to realize income from physically held gold.

The idea is really quite simple: whenever the value of gold bullion is rising faster than inflation, as it has done by a wide margin for more than a decade, a portion of the investment can be periodically withdrawn and sold without diminishing the value of holdings. For example, in 2009 about 3 1/2 ounces of gold had the same value as 10 ounces in 2000 so over that time 6 1/2 ounces could have been sold without diminishing the original investment adjusted for inflation.

There is another advantage to income generated from partial liquidation of gold holdings – it is to be taxed as capital gains and not income, which for most investors is a significant savings. Furthermore, under current law most transactions are not even reportable leaving the issues entirely up to the investor’s conscience.

When you have enough of gold you can also lease it out at interest. The problem with that, as with all other interest bearing investments, is that you hand your money over to another party based solely on a promise that it will be repaid in full plus a fee for its use. That is true even for bank savings accounts, where your money is loaned out to generate income. Somebody else has your money and they alone control how it will be used. And if they go belly up, you lose.

Although the primary strength of gold bullion investments is long term wealth protection, they can also provide a favorable source of income should the need arise.

]]>http://www.gold-bullion.org/bullion/gold-investment-interest/#12936610103368http://www.gold-bullion.org/bullion/gold-bullion-market-performance/
Mon, 27 Dec 2010 11:38:25 -0800December 27, 2010 – With year end doldrums settling over the market it is a good time to go back to the basics of gold bullion investing.

Wall Street wizards are quick to claim that gold makes a bad investment and even that gold is no investment at all. Doing so is in the insiders’ best interest because they need gobs of investor money to fatten their wallets. But their arguments just don’t hold water.

It is important to note that we use the early 1970s as a beginning reference point because that is when the dollar was divorced from gold. Stock peddlers, however, use a single day in 1980 when gold had its infamous – and not since repeated – spike to $850. To put that into perspective, in the first two months the average daily high was $670 and for the year it was just $613.

So to begin, suppose that 40 years ago we put the Dow and the same dollars worth of gold in a portfolio. Over the years the stocks would have returned 2.3% over inflation while gold doubled that performance. In the first decade of this century all but eight of the Dow 30 have posted net losses and seven were dropped from the list as they became virtually worthless. By comparison, gold outdistanced Disney, the best Dow performer, by almost four to one.

A more realistic way to look at the value of investments is to think of them in terms of purchasing power. For example, it cost 20 ounces of gold to purchase the Dow at the start of 1972 but today the cost would be only eight ounces. And from the day that gold was unchained from the dollar it has consistently and substantially outperformed the consumer price index.

Without question gold bullion speaks for itself as a sound investment.

]]>December 27, 2010 – With year end doldrums settling over the market it is a good time to go back to the basics of gold bullion investing.

Wall Street wizards are quick to claim that gold makes a bad investment and even that gold is no investment at all. Doing so is in the insiders’ best interest because they need gobs of investor money to fatten their wallets. But their arguments just don’t hold water.

It is important to note that we use the early 1970s as a beginning reference point because that is when the dollar was divorced from gold. Stock peddlers, however, use a single day in 1980 when gold had its infamous – and not since repeated – spike to $850. To put that into perspective, in the first two months the average daily high was $670 and for the year it was just $613.

So to begin, suppose that 40 years ago we put the Dow and the same dollars worth of gold in a portfolio. Over the years the stocks would have returned 2.3% over inflation while gold doubled that performance. In the first decade of this century all but eight of the Dow 30 have posted net losses and seven were dropped from the list as they became virtually worthless. By comparison, gold outdistanced Disney, the best Dow performer, by almost four to one.

A more realistic way to look at the value of investments is to think of them in terms of purchasing power. For example, it cost 20 ounces of gold to purchase the Dow at the start of 1972 but today the cost would be only eight ounces. And from the day that gold was unchained from the dollar it has consistently and substantially outperformed the consumer price index.

Without question gold bullion speaks for itself as a sound investment.

“Stock Markets Are Poised to Steal the Show Next Year,” the headline declares. “And what show is that?” you may ask. After a brief mention of “other asset classes” Barley presents his case relative only to bonds, and it is hard to think of any other asset class that wouldn’t steal that show.

More unsettling, however, Barley’s show is one put on for insiders and not the average investor. “Cash-rich corporate balance sheets,” Barley’s first positive sign, indicate only that strong earnings (Barley’s second positive sign) are not finding their way back to investors. However, they are strongly driving up equity buybacks, which Barley also believes is good. And it is a good thing – for insiders. That way corporate wealth can be channeled into private equity and M & A schemes to keep the Wall Street casino running.

Oddly, Barley believes that “global growth [is] looking good.” Wow. Outside of Asia growth is stagnant, and even when the volatile emerging Asian economies are factored in, average growth still falls below baseline. Until western nations at least start to climb out of the hole such optimism cannot be justified.

To be fair, Barley admits that “volatility is likely [and] politics and policy are big risks.” His examples include adding Spain to European bailouts, increasing them to “18% of the euro zone's economy,” “Chinese monetary policy and emerging-market inflation,” and the failure of QE2 “to reduce unemployment or spur growth,” any of which “will likely drive periods of risk aversion.”

Exactly. Enjoy the show, but avert the risk with gold bullion investments.

“Stock Markets Are Poised to Steal the Show Next Year,” the headline declares. “And what show is that?” you may ask. After a brief mention of “other asset classes” Barley presents his case relative only to bonds, and it is hard to think of any other asset class that wouldn’t steal that show.

More unsettling, however, Barley’s show is one put on for insiders and not the average investor. “Cash-rich corporate balance sheets,” Barley’s first positive sign, indicate only that strong earnings (Barley’s second positive sign) are not finding their way back to investors. However, they are strongly driving up equity buybacks, which Barley also believes is good. And it is a good thing – for insiders. That way corporate wealth can be channeled into private equity and M & A schemes to keep the Wall Street casino running.

Oddly, Barley believes that “global growth [is] looking good.” Wow. Outside of Asia growth is stagnant, and even when the volatile emerging Asian economies are factored in, average growth still falls below baseline. Until western nations at least start to climb out of the hole such optimism cannot be justified.

To be fair, Barley admits that “volatility is likely [and] politics and policy are big risks.” His examples include adding Spain to European bailouts, increasing them to “18% of the euro zone's economy,” “Chinese monetary policy and emerging-market inflation,” and the failure of QE2 “to reduce unemployment or spur growth,” any of which “will likely drive periods of risk aversion.”

Exactly. Enjoy the show, but avert the risk with gold bullion investments.

]]>http://www.gold-bullion.org/bullion/gold-investing-forecast/#12930464983360http://www.gold-bullion.org/bullion/gold-bullion-minestocks/
Mon, 20 Dec 2010 11:01:10 -0800December 20, 2010 - The steady climb of gold bullion prices has hucksters crawling out of the woodwork with schemes to make even more money off of the bull market. One of the more heavily promoted products lately are gold mine stocks, which are touted to multiply increasing gold prices.

The argument goes like this: Average production cost for an ounce of gold in the third quarter of 2010 was $585, so gold bullion purchased at $1200 per ounce produced a gross profit of $615. When gold reached $1400 per ounce, a 16% increase, the gross profit rose to $815, a 32% gain assuming mining costs remain constant. Thus the net worth of the mine based on its in-ground reserves also rose 32%. The profit multiplying effect has some validity, but only up to a point and it is not nearly so dramatic. And of course, losses will be multiplied the same as gains.

Gold mines are vastly different from manufacturing and retailing operations. The only basis for evaluating a mine’s worth is the extent of its reserves, and that can be known for certain only when the mine plays out. Unexpected technical difficulties are frequent and can be very expensive, cutting deeply into profits. Furthermore, operating expenses often based on local currencies while output is independent, making profitability potentially volatile and difficult to assess. In addition, the location of many mines can result in incompetent management and make them subject to government instability.

Mining operations are funded based on highly optimistic forecasts of lifetime yield and conservative estimates of the movement in gold prices. That combination dilutes the “multiplying effect” and greatly increase the possibility of overvaluation when investment is heavy.

By far the best way to capitalize on rising gold bullion prices is the direct way – buying gold bullion.

]]>December 20, 2010 - The steady climb of gold bullion prices has hucksters crawling out of the woodwork with schemes to make even more money off of the bull market. One of the more heavily promoted products lately are gold mine stocks, which are touted to multiply increasing gold prices.

The argument goes like this: Average production cost for an ounce of gold in the third quarter of 2010 was $585, so gold bullion purchased at $1200 per ounce produced a gross profit of $615. When gold reached $1400 per ounce, a 16% increase, the gross profit rose to $815, a 32% gain assuming mining costs remain constant. Thus the net worth of the mine based on its in-ground reserves also rose 32%. The profit multiplying effect has some validity, but only up to a point and it is not nearly so dramatic. And of course, losses will be multiplied the same as gains.

Gold mines are vastly different from manufacturing and retailing operations. The only basis for evaluating a mine’s worth is the extent of its reserves, and that can be known for certain only when the mine plays out. Unexpected technical difficulties are frequent and can be very expensive, cutting deeply into profits. Furthermore, operating expenses often based on local currencies while output is independent, making profitability potentially volatile and difficult to assess. In addition, the location of many mines can result in incompetent management and make them subject to government instability.

Mining operations are funded based on highly optimistic forecasts of lifetime yield and conservative estimates of the movement in gold prices. That combination dilutes the “multiplying effect” and greatly increase the possibility of overvaluation when investment is heavy.

By far the best way to capitalize on rising gold bullion prices is the direct way – buying gold bullion.

]]>http://www.gold-bullion.org/bullion/gold-bullion-minestocks/#12928716703356http://www.gold-bullion.org/bullion/taxcuts-gold-bullion/
Thu, 16 Dec 2010 11:47:30 -0800December 16, 2010 – The Fed has admitted that it does not have a panacea for our nation’s economic ills but gold bullion investment can provide every citizen with relief from the effects.

The Congressional Budget Office (CBO) assumed that the tax cuts would expire and stimulus spending would not expand when it issued its August update to The Budget and Economic Outlook, but it also included an alternate scenario if, as is the case, that were not to happen. Under those conditions we can expect the deficit to reach 8% of GDP by 2020 and publicly held debt to increase to 100% of the real GDP. Even more sobering is the cost to service that debt.

The tax cut extension and proposed expansion of QE2 will balloon the already unthinkable projected interest payments of $778 billion by 2020. Combined with further excessive federal spending it is quite possible that within 10 years we will be wasting $1 trillion a year on an expense that puts zero back into the economy.

The CBO expects no significant improvement any time soon, predicting “slow income growth as well as lost wealth” in the years ahead. But what can we expect from gold?

In the International Business Times Dave Brown reports what Eric Sprott, CEO of Sprott Asset Management, has to say. “I think gold is the reserve currency today. There is not a currency in the world that it hasn't appreciated against by at least 300 per cent. And it has beaten every stock market.” Sprott believes “that gold will go a lot higher because it is under-owned as only 1 per cent of people's money is in it.”

That will undoubtedly change as investors continue flocking to gold. The gold bullion price “could go to $2,000 an ounce. I could imagine it at $5,000,” Sprott says.

]]>December 16, 2010 – The Fed has admitted that it does not have a panacea for our nation’s economic ills but gold bullion investment can provide every citizen with relief from the effects.

The Congressional Budget Office (CBO) assumed that the tax cuts would expire and stimulus spending would not expand when it issued its August update to The Budget and Economic Outlook, but it also included an alternate scenario if, as is the case, that were not to happen. Under those conditions we can expect the deficit to reach 8% of GDP by 2020 and publicly held debt to increase to 100% of the real GDP. Even more sobering is the cost to service that debt.

The tax cut extension and proposed expansion of QE2 will balloon the already unthinkable projected interest payments of $778 billion by 2020. Combined with further excessive federal spending it is quite possible that within 10 years we will be wasting $1 trillion a year on an expense that puts zero back into the economy.

The CBO expects no significant improvement any time soon, predicting “slow income growth as well as lost wealth” in the years ahead. But what can we expect from gold?

In the International Business Times Dave Brown reports what Eric Sprott, CEO of Sprott Asset Management, has to say. “I think gold is the reserve currency today. There is not a currency in the world that it hasn't appreciated against by at least 300 per cent. And it has beaten every stock market.” Sprott believes “that gold will go a lot higher because it is under-owned as only 1 per cent of people's money is in it.”

That will undoubtedly change as investors continue flocking to gold. The gold bullion price “could go to $2,000 an ounce. I could imagine it at $5,000,” Sprott says.

]]>http://www.gold-bullion.org/bullion/taxcuts-gold-bullion/#12925288503352http://www.gold-bullion.org/bullion/gold-bullion-investors/
Wed, 15 Dec 2010 14:56:27 -0800December 15, 2010 – Farrell’s scathing dress down of Wall Street gives more than sufficient reason to take a strong position in gold bullion investment, and his dire predictions for the stock market have strong analytical support.

One of the more successful investment newsletters, The Aden Forecast, bases its recommendations on decades of studying “megatrends” that evolve from close examination of moving averages and the underlying market fundamentals that cause them.

Because megatrends take so long to develop most forecasters restrict their vision to just a quarter or two into the future, relying on cursory observation of prominent current events. However, once a megatrend arrives it overpowers any such events, frequently driving the market in unexpected directions.

Most market analysts who do look to the long term try to fit their predictions to historical cycles that may or not have relevance due to the constant flux in market fundamentals. Megatrends, on the other hand, directly reflect the evolution of those fundamentals.

The stock market megatrend renders this warning from Aden, as quoted by Peter Brimelow in MarketWatch: “At some point, we suspect the rise will stall and it’s quite possible . . . that precedes a huge stock market decline . . . This is a scenario that cannot be ruled out considering the big picture fundamentals, like the debt load and its repercussions in the years ahead.”

According to Aden there is good news in gold’s megatrend as long as the price stays above the major trend line, which is well below $1,000. “The gold price is incredibly strong above $1340 and as long as it stays above this level, we could see higher prices . . . The point is, a 10-15% correction would actually be healthy.”

For everyone investing in gold bullion for the long haul, that’s some really good news.

]]>December 15, 2010 – Farrell’s scathing dress down of Wall Street gives more than sufficient reason to take a strong position in gold bullion investment, and his dire predictions for the stock market have strong analytical support.

One of the more successful investment newsletters, The Aden Forecast, bases its recommendations on decades of studying “megatrends” that evolve from close examination of moving averages and the underlying market fundamentals that cause them.

Because megatrends take so long to develop most forecasters restrict their vision to just a quarter or two into the future, relying on cursory observation of prominent current events. However, once a megatrend arrives it overpowers any such events, frequently driving the market in unexpected directions.

Most market analysts who do look to the long term try to fit their predictions to historical cycles that may or not have relevance due to the constant flux in market fundamentals. Megatrends, on the other hand, directly reflect the evolution of those fundamentals.

The stock market megatrend renders this warning from Aden, as quoted by Peter Brimelow in MarketWatch: “At some point, we suspect the rise will stall and it’s quite possible . . . that precedes a huge stock market decline . . . This is a scenario that cannot be ruled out considering the big picture fundamentals, like the debt load and its repercussions in the years ahead.”

According to Aden there is good news in gold’s megatrend as long as the price stays above the major trend line, which is well below $1,000. “The gold price is incredibly strong above $1340 and as long as it stays above this level, we could see higher prices . . . The point is, a 10-15% correction would actually be healthy.”

For everyone investing in gold bullion for the long haul, that’s some really good news.

Farrell looks not only at the threat to our economy posed by perverse derivative trade, he also call into question the strong promotion of investments in emerging economies. Citing a Fortune interview with hedge-fund kingpin Jim Chanos, “China’s economy is about to implode in a spectacular real estate bust.” Chanos went on to say in an interview with Charlie Rose that “China’s on an economic treadmill to hell.” If that were to happen there would be a domino effect throughout Asia. While Chanos is “is shorting the entire country,” the likes of Goldman Sachs continue to push investors into risky territory.

Chanos likens the situation to that in Japan three decades ago when they grew their economy “largely on the back of capital investment.” China’s economy is “60% fixed-asset investment, and not even in the developing world is that sustainable.”

While Wall Street gambles with America’s retirement investments, the economy languishes. Real economic growth in 2011 is predicted to lag what is needed to sustain population growth by 1.3%. According to Farrell we are entering a “new era, featuring no growth, deflation and a jobless recovery, will continue for years, resembling Japan over the past two decades.”

The government bailout sent rogue Wall Street traders a very clear message: “they can take bigger and riskier bets in the future because they will get away with it . . . when they fail miserably again.” Even their apparent compliance with the Dodd-Frank bill banning proprietary trading is but a smokescreen. According to Michael Lewis in a Bloomberg article, “They are merely disguising the activity, by giving it some other name.”

It is a mess, one which cries for investments in gold bullion.

]]>December 14, 2010 – While Paul B. Farrell’s article in MarketWatch gives us great cause to invest in gold bullion, a much darker message lurks within.

Farrell looks not only at the threat to our economy posed by perverse derivative trade, he also call into question the strong promotion of investments in emerging economies. Citing a Fortune interview with hedge-fund kingpin Jim Chanos, “China’s economy is about to implode in a spectacular real estate bust.” Chanos went on to say in an interview with Charlie Rose that “China’s on an economic treadmill to hell.” If that were to happen there would be a domino effect throughout Asia. While Chanos is “is shorting the entire country,” the likes of Goldman Sachs continue to push investors into risky territory.

Chanos likens the situation to that in Japan three decades ago when they grew their economy “largely on the back of capital investment.” China’s economy is “60% fixed-asset investment, and not even in the developing world is that sustainable.”

While Wall Street gambles with America’s retirement investments, the economy languishes. Real economic growth in 2011 is predicted to lag what is needed to sustain population growth by 1.3%. According to Farrell we are entering a “new era, featuring no growth, deflation and a jobless recovery, will continue for years, resembling Japan over the past two decades.”

The government bailout sent rogue Wall Street traders a very clear message: “they can take bigger and riskier bets in the future because they will get away with it . . . when they fail miserably again.” Even their apparent compliance with the Dodd-Frank bill banning proprietary trading is but a smokescreen. According to Michael Lewis in a Bloomberg article, “They are merely disguising the activity, by giving it some other name.”

]]>http://www.gold-bullion.org/bullion/stocks-vs-goldbullion/#12923571353345http://www.gold-bullion.org/bullion/gold-bullion-uptrend/
Mon, 13 Dec 2010 12:32:29 -0800December 13, 2010 – Look for a banner year for gold bullion investment in 2011, as insider trading investigations begin to prosecute and investor confidence in Wall Street plummets. Insiders’ abuses are certainly no secret as they defiantly flaunt their successes, but rarely have they been called on the carpet in a highly respected financial forum.

However, that is precisely what Paul B. Farrell has done in a scathing attack on the stock market published in the Wall Street Journal’s MarketWatch. Calling stocks “Wall Street’s ultimate sucker bet,” Farrell warns “Do not buy stocks. Not for retirement. Not in the coming decade.”

According to Farrell, “Adjusted for inflation, Wall Street has lost 20% of your money in the past decade . . . [and] will lose another 20% of your retirement money” by 2020. But there is far more to the warning than predicted poor returns. As the old saw goes, “follow the money.”

One early statement released by "Operation Broken Trust," an investigation into investment fraud, gets to the root of the matter: “Investors, as opposed to traders, buy stocks in companies whose profits they expect to rise. The conventional wisdom says stock prices will follow profits up, but over the last two business cycles, that simply has not happened.” With profits soaring at 29 times the rate of stock values over the past dozen years, a lot of money in which investors should rightfully share has been siphoned off via hedge funds and countless machinations designed solely to further fill the coffers of already obscenely wealthy insiders.

Few are so naïve as to expect permanent change from these investigations. Most likely the offenders will walk and insiders will continue to squeeze every last dime out of investors with newer and even more insidious derivatives. It is reassuring to know that they can’t get their greedy paws on our privately held gold bullion investments.

]]>December 13, 2010 – Look for a banner year for gold bullion investment in 2011, as insider trading investigations begin to prosecute and investor confidence in Wall Street plummets. Insiders’ abuses are certainly no secret as they defiantly flaunt their successes, but rarely have they been called on the carpet in a highly respected financial forum.

However, that is precisely what Paul B. Farrell has done in a scathing attack on the stock market published in the Wall Street Journal’s MarketWatch. Calling stocks “Wall Street’s ultimate sucker bet,” Farrell warns “Do not buy stocks. Not for retirement. Not in the coming decade.”

According to Farrell, “Adjusted for inflation, Wall Street has lost 20% of your money in the past decade . . . [and] will lose another 20% of your retirement money” by 2020. But there is far more to the warning than predicted poor returns. As the old saw goes, “follow the money.”

One early statement released by "Operation Broken Trust," an investigation into investment fraud, gets to the root of the matter: “Investors, as opposed to traders, buy stocks i